Morningstar Rating

Stock Research and Analysis

by Grady Burkett, CFA

Bulls Say

HP's global reach and well-run logistics provide an efficient platform to assimilate and distribute new technologies.
HP's enterprise hardware and software businesses sell high-margin, sticky products such as networking equipment storage arrays and management tools.
Management set itself a very low hurdle for 2014 by forecasting free cash flow to decline again. Read more 

Bears Say

The PC business faces declining average selling prices and substitute technologies that overwhelm our optimism for the expected short-term acceleration in the PC refresh cycle.
Data center giants like Cisco are eyeing HP's traditional markets as opportunities to drive growth. Increased competition could bring margin pressure.
HP's R&D investment and acquisition spending has recently trailed its large enterprise competitors by a wide margin. The firm may need to invest heavily over the next few years to remain competitive. Read more 

Management

Meg Whitman was appointed CEO in September 2011, replacing Leo Apotheker after less than a year at helm. Since taking over as CEO, Whitman has instituted a number of leadership changes across HP's key business units, and we believe she is on track to   Read more 

Profile

Hewlett-Packard manufactures and sells information technology products and services to businesses and consumers worldwide. Services account for about 20% of revenue, enterprise   Read more 

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