NEW YORK (TheStreet) -- HP Inc. (HPQ) stock is rising 0.95% to $11.71 Tuesday afternoon after the company earlier announced that it's partnering with HTC to deliver a virtual reality ready desktop PC for gamers.
The new VR system is called the HP ENVY Phoenix, the company said.
"As virtual reality becomes the next wave of innovation for gaming, customers need a desktop PC specifically configured with quality, performance and computing power to enable the experience," said Kevin Frost, VP and manager of consumer personal systems at HP Inc.
Additionally, the new gaming tower can host a "massive" amount of large format VR games, videos and short animations, the company noted.
Based in Palo Alto, CA, HP Inc. 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.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate HP INC as a Buy with a ratings score of B. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.92 is somewhat weak and could be cause for future problems.
- The revenue fell significantly faster than the industry average of 25.4%. Since the same quarter one year prior, revenues slightly dropped by 9.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- 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, HP INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- HPQ's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 34.52%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
- You can view the full analysis from the report here: HPQ