Trade-Ideas: Hewlett-Packard (HPQ) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Hewlett-Packard ( HPQ) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Hewlett-Packard as such a stock due to the following factors:

  • HPQ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $296.9 million.
  • HPQ is up 3.4% today from today's close.

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More details on HPQ:

Hewlett-Packard Company, together with its subsidiaries, provides products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. The stock currently has a dividend yield of 1.9%. HPQ has a PE ratio of 13. Currently there are 10 analysts that rate Hewlett-Packard a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Hewlett-Packard has been 13.3 million shares per day over the past 30 days. Hewlett-Packard has a market cap of $60.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.53 and a short float of 1.1% with 2.22 days to cover. Shares are down 17.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hewlett-Packard as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • HEWLETT-PACKARD CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, HEWLETT-PACKARD CO's EPS of $2.62 remained unchanged from the prior years' EPS of $2.62. This year, the market expects an improvement in earnings ($3.65 versus $2.62).
  • The revenue fell significantly faster than the industry average of 33.3%. Since the same quarter one year prior, revenues slightly dropped by 4.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • In its most recent trading session, HPQ has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • HPQ's debt-to-equity ratio of 0.72 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that HPQ's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.67 is low and demonstrates weak liquidity.

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