NEW YORK (TheStreet) -- Shares of Hewlett-Packard are slipping, down 4.51% to $37.09 in mid-morning trading Tuesday, after peer company Microsoft reported a 13% year over year drop in its Windows OEM Pro and non-Pro revenue for the fiscal second quarter. Microsoft also issued conservative guidance, citing slowing business PC demand and a shift towards web/cloud data centers. Microsoft's revenue guidance of $21 billion at the midpoint falls about $3 billion below the consensus estimate. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. HP is expected to split into two later this year. The company announced this morning that Meg Whitman will be CEO of Hewlett-Packard Enterprise, and Dion Weisler will head HP Inc. Palo Alto, CA-based Hewlett-Packard is a provider of products, technologies, software, solutions and services to individual consumers, small and medium sized businesses, and large enterprises. Separately, TheStreet Ratings team rates HEWLETT-PACKARD CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate HEWLETT-PACKARD CO (HPQ) a BUY. 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 solid stock price performance, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these 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: Compared to its closing price of one year ago, HPQ's share price has jumped by 34.24%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HPQ should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. 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 ($3.96 versus $2.62). HPQ, with its decline in revenue, underperformed when compared the industry average of 13.9%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share. HPQ's debt-to-equity ratio of 0.73 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. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.83 is weak. You can view the full analysis from the report here: HPQ Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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