Why Hewlett-Packard Will Underperform in 2013

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled IT giant Hewlett-Packard (NYSE: HPQ  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Hewlett-Packard and see what CAPS investors are saying about the stock right now.

Hewlett-Packard facts

Headquarters (founded)

Palo Alto, Calif. (1939)

Market Cap

$28.2 billion

Industry

Computer hardware

Trailing-12-Month Revenue

$120.4 billion

Management

CEO Margaret Whitman (since 2011)

CFO Catherine Lesjak (since 2007)

Return on Equity (average, past 3 years)

(0.6%)

Cash/Debt

$11.3 billion / $28.4 billion

Dividend Yield

3.7%

Competitors

Accenture (NYSE: ACN  )

Dell (UNKNOWN: DELL.DL  )

IBM (NYSE: IBM  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 10% of the 3,846 members who have rated Hewlett-Packard believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, JohnStuartMill, succinctly summed up the Hewlett-Packard bear case for our community:

PCs are a dead industry and the [Hewlett-Packards] and [Dells] of the world are behemoths which just aren't nimble enough to create fast enough or take enough risk for a big reward. Even Lenovo has seemed to have taken over as the best stock for the PC industry. [Hewlett-Packard] is at its stage in a stocks life of just buying companies and integrating them in order to keep the semblance of growth.

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