Today's Pre-Market Laggard Is Hewlett-Packard (HPQ)

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 pre-market laggard 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 $349.9 million.
  • HPQ traded 18,856 shares today in the pre-market hours as of 9:28 AM.
  • HPQ is down 2.3% today from yesterday'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 2.2%. 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 8 rate it a hold.

The average volume for Hewlett-Packard has been 10.6 million shares per day over the past 30 days. Hewlett-Packard has a market cap of $57.1 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.59 and a short float of 0.8% with 1.47 days to cover. Shares are down 21.2% 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. Among the primary strengths of the company is its attractive valuation levels, considering its current price compared to earnings, book value and other measures. 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's earnings per share declined by 16.7% in the most recent quarter compared to the same quarter a year ago. 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 6.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • HPQ's debt-to-equity ratio of 0.79 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 0.70 is low and demonstrates weak liquidity.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market on the basis of return on equity, HEWLETT-PACKARD CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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