NEW YORK (TheStreet) -- Hewlett-Packard shares are flat in early market trading following reports that the company is looking for a buyer for its Chinese networking subsidiary H3C Technologies,asources toldaBloomberg. The company has a 20% networking market share in the Asia-Pacific region thanks partly to the company which it purchased for $2.68 billion in 2009, according to aaBarron's report. Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Hewlett Packard's asking price is said to be in the $5 billion range for a 51% stake in the company.a Earlier this month the company announced that it was splitting into two companies, separating its personal computer and printing businesses from its technology services. TheStreet Ratings team rates HEWLETT-PACKARD CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate HEWLETT-PACKARD CO (HPQ) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins." 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 47.05%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year. HPQ's revenue growth trails the industry average of 13.8%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. 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. The gross profit margin for HEWLETT-PACKARD CO is currently lower than what is desirable, coming in at 27.22%. Regardless of HPQ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, HPQ's net profit margin of 3.57% is significantly lower than the industry average. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Computers & Peripherals industry. The net income has significantly decreased by 29.1% when compared to the same quarter one year ago, falling from $1,390.00 million to $985.00 million. 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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