Is Hewlett-Packard a Solid Portfolio Play?

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With shares of Hewlett-Packard (NYSE:HPQ) trading around $26, is HPQ an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Hewlett-Packard provides products, technologies, software, solutions, and services to individual consumers, small and medium businesses, and large enterprises worldwide. The company offers commercial notebooks and desktops, consumer notebooks, desktops, software, and services for the commercial and consumer markets. The services segment provides consulting, outsourcing, and technology services to infrastructure, applications, and business process domains. The diverse technological products and services offered by Hewlett-Packard make it a leading provider that sees increased demand through global expansion.

In May of 2012, Hewlett-Packard announced its intentions to restructure, projecting savings between $3.0 to $3.5 billion by the end of the 2014 fiscal year. The restructuring was to include job cuts for somewhere around 27,000 HP employees — 8 percent of its total workforce as of October 2011. “While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company,” HP President and Chief Executive Officer, Meg Whitman, said in the company press release. Reuters reports that the tech company will be making 1,124 out of the total 27,000 job cuts in Britain. The Unite union told Reuters that HP has 15,000 to 20,000 employees in the country.

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