HP (HPQ) Stock Gains Amid Entry Into 3D Printing

NEW YORK (TheStreet) -- HP  (HPQ) stock is advancing 0.34% to $11.68 in early-morning trading on Tuesday, as it will introduce two 3D printers targeted at manufacturing customers. 

The company will collaborate with businesses such as BMW, Siemens (SIEGY) and Nike (NKE) to co-develop the technology, Bloomberg reports.

HP is expanding into new industries in an attempt to drive growth after splitting from HP Enterprise (HPE) last year. The printers will be delivered beginning in late 2016 and could help the company reverse the trend of declining sales and soft demand for paper-based documents.

The price of one of the printer models will start at roughly $130,000.

"HP really realized now was the time to get involved and take advantage of this growing industry," Joe Kempton, an analyst at Canalys, told Bloomberg. "It's hugely important for HP to prove themselves as a dynamic company, as an innovative company, who are really disrupting the market."

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

HP's strengths such as its expanding profit margins are countered by weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

You can view the full analysis from the report here: HPQ

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 article's author.

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