NEW YORK (TheStreet) -- Over the past four months Hewlett Packard (HPQ - Get Report) has made a base pattern on the chart that can support further near-term gains.
In the chart of HPQ, above, we can see the base pattern that HPQ has outlined the past four months. HPQ is now above the 50-day Simple Moving Average and the slope of the moving average is positive. HPQ has also rallied above the 200-day moving average, but that average has yet to turn up. The coincident to leading On-Balance-Volume (OBV) line is bottoming, and we can see the result of the bullish divergence back in August and September between the lower lows in price and the higher lows from the momentum indicator. This chart also shows that there is some overhead resistance around $15. HPQ will need to push through that area.
This longer-term view of HPQ, see chart above, suggests that the short-term base noted above could generate more of a rally. Here we see that HPQ has rallied above the 40-week moving average, and that there is a bullish crossover from the Moving Average Convergence Divergence (MACD) oscillator. The longer-term bullish divergence from the momentum study is also supportive.
Traders could go long HPQ at current levels, with a stop-loss below $13, and add to longs when the resistance around $15 is broken. The advance could carry into the upper teens.
TheStreet Ratings team rates HP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate HP INC (HPQ) a BUY. This is driven by multiple 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 0.94, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that HPQ's debt-to-equity ratio is low, the quick ratio, which is currently 0.67, displays a potential problem in covering short-term cash needs.
- The revenue fell significantly faster than the industry average of 25.6%. Since the same quarter one year prior, revenues slightly dropped by 8.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing 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.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, HPQ has underperformed the S&P 500 Index, declining 16.48% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- You can view the full analysis from the report here: HPQ
Object of Desire: Epson SureColor P6000 & P8000
NOVEMBER 24, 2015
By Greg Scoblete
Last year at PhotoPlus Expo, Epson debuted its new SureColor series of professional photo printers with all new UltraChrome HD inks. Now the company is back with two new, wider members of the family. The 24-inch SureColor P6000 and 44-inch P8000 will use the same eight-color pigmented ink set that’s available in the earlier P600 and P800 models. Both printers can deliver variable droplet sizes as small as 3.5 picoliters and black densities that exceed earlier generation ink formulations. They accept roll and cut-sheet media up to 1.5mm thick, and a high-speed rotary cutter is included. The UltraChrome HD ink set is still undergoing its torture test by print permanence expert Henry Wilhelm, but preliminary data indicates that, depending on the paper used, prints rolling off any SureColor will last more than 200 years. Monochrome prints on select papers will resist fading for 400 years. We can only hope human civilization has that much time left.
PRICE: $2,145 (P6000); $3,675 (P8000)
Related: Mini Review: Epson SureColor P800
Mini Review: Moab Juniper Baryta Rag 305
The HP Inc. (NYSE: HPQ) board of directors has declared a regular cash dividend of $0.124 per share on the company’s common stock, which is the company’s first regular dividend since the separation of Hewlett Packard Enterprise Company. The dividend, the first in the company’s fiscal year 2016, is payable on January 6, 2016, to stockholders of record as of the close of business on December 9, 2015.
HP Inc. (NYSE:HPQ)’s stock on 23 November traded at beginning with a price of $14.31 and when day-trade ended the stock finally moved up 1.21% to end at $14.23. HP Inc. (NYSE:HPQ)’s showed weekly performance of 6.59%.
Hewlett Packard Enterprise Company (NYSE:HPE) declared a regular cash dividend of $0.055 per share on the company’s common stock. This dividend, the first in Hewlett Packard Enterprise’s fiscal year 2016, is payable on January 6, 2016, to stockholders of record as of the close of business on December 9, 2015.
Hewlett Packard Enterprise Company (NYSE:HPE) on Monday its shares closed at $13.85. Hewlett Packard Enterprise Company (NYSE:HPE) monthly performance stands at -18.53% while its year to date performance is -16.31%.
Cray Inc. (NASDAQ: CRAY) announced the Company plans to join the OpenHPC Project led by The Linux Foundation. Cray’s participation in OpenHPC will focus on making technology contributions that will help to standardize software stack components, leverage open-source technologies, and simplify the maintenance and operation of the software stack for end-users.
Cray Inc. (NASDAQ:CRAY) shares moved up 0.38% on last trading day to close the day at $34.37. Company price to sale ratio is 1.94 and has 2.50% insider ownership. Cray Inc. (NASDAQ:CRAY) belongs to Technology sector.
On 12 November, Xplore Technologies Corp. (NASDAQ:XPLR) reported its results for the second quarter of its fiscal year 2016. For the three months ended September 30, 2015, Xplore reported revenue of $28,853,000, compared to $7,522,000 in reported revenue for the three months ended September 30, 2014, an increase of $21,331,000, or approximately 284%. For the six months ended September 30, 2015, Xplore reported revenue of $52,896,000, compared to $15,789,000 in reported revenue for the six months ended September 30, 2014, an increase of $37,107,000, or approximately 235%.
On last trading day Xplore Technologies Corp. (NASDAQ:XPLR) moved down -0.37% to close at $5.40. XPLR is -21.02% away from its 52 week high and is moving 21.80% ahead of its 52 week low. Xplore Technologies Corp. (NASDAQ:XPLR) return on investment (ROI) is 1.00% while return on equity (ROE) is 2.70%.
On 17 November, Arista Networks (NYSE:ANET) announced optimized interconnect solutions for public and private cloud data centers. With these new solutions, Arista is leveraging the technology and operational advantages of Arista’s EOS and CloudVisionTM for inter-data center solutions that reduce both capital and operational costs.
Arista Networks, Inc. (NYSE:ANET) on Monday closed at $73.97. Stock institutional ownership is 46.80% while insider ownership includes 13.20%. Arista Networks, Inc. (NYSE:ANET) distance from 50-day simple moving average (SMA50) is 12.53%.