Why Hewlett-Packard Is Poised to Underperform

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

$37.4 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)

(1.5%)

Cash/Debt

$11.3 billion / $28.4 billion

Dividend Yield

3.2%

Competitors

Accenture

Dell

IBM

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

On CAPS, 10% of the 3,833 members who have rated Hewlett-Packard believe the stock will underperform the S&P 500 going forward.

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

I just don't believe that Whitman will be able to save this behemoth from itself. They were caught napping, have had a ten year streak of awful decision-making and leadership and their products are not really that desirable anymore. It takes a long time to turn around an aircraft carrier and even longer to turn around one that is damaged.

The massive wave of mobile computing has done much to unseat the major players in the PC market, including venerable technology names like Hewlett-Packard. However, HP's rapidly shifting its strategy under the new leadership of CEO Meg Whitman. But does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor blip on its road to irrelevance? The Motley Fool's technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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Comments from our Foolish Readers

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  • Report this Comment On February 26, 2013, at 12:11 AM, dabbler3248 wrote:

    Although VCSY's shareprice is just a few pennies, don't be "fooled" because VCSY shareholders own the patent claims that is making millions of US investors/companies in the market/industry big returns on their money. At this time Hewlett Packard has the best of both worlds. Hewlett Packard has expressed their confidence in their allegations against Autonomy, while moving forward with the use of VCSY's patent claims to be able to intergrate anything to anything, thus providing the integration needed to glue IDOL7 and Vertica together so that Hewlett Packard was able to release IDOL10(quietly) and other great advancements that could only be done with the use of the VCSY '744 and '629 patents.

    ---------------------------------------------

    By: moonpunk

    23 Feb 2013, 02:58 PM CST

    Msg. 358208 of 358453

    HP is integrating their entire makeup.

    http://allthingsd.com/20130222/meg-whitman-wants-to-fix-and-...

    "No one knows more about computing than HP."

    "This is some of the biggest shifts in technologies that I've seen in my career".

    So HP has a new technology they're very happy about.

    What technology would that be waterfoundonmars?

    -------------------------------------------------------

    It's a FACT that the fraud investigation period against Autonomy is from January of 2009 to June 30, 2011.

    The fraud investigation starting at the same time that Autonomy bought Interwoven and not anytime before then.

    http://www.komonews.com/news/business/UK-watchdog-launches-i...

    It's a FACT that Autonomy bought Interwoven on January 22, 2009 just ten days after VCSY notified Interwoven that Interwoven's TeamSite product infringes the VCSY '744 and '629 patents. http://www.cbronline.com/blogs/technology/autonomy_buys_i

    It's a FACT that Autonomy intergrated their IDOL and other products into Interwoven's TeamSite product, which is proven to be infringing VCSY's '744 and '629 patents.

    http://www.autonomy.com/content/News/Releases/2009/0319.en.h...

    It's a FACT that just days after VCSY received the '744 and '629 reexamination certificates on November 15, 2012 from the USPTO because of the reexamination process iniatiated by Interwoven, Hewlett Packard started to publicly accuse Autonomy of fraud!

    http://www.irishtimes.com/newspaper/breaking/2012/1120/break...

    At the 9 minute mark of this interview just days ago, Meg Whitman reitterates that Hewlett Packard feels more strongly now about the allegations about Autonomy.

    http://allthingsd.com/20130222/meg-whitman-wants-to-fix-and-...

    IDOL10 was released by HP on January 24th(2013), VERY QUIETLY!! Just days earlier an article stated that HP was claiming IDOL 10 made $900 Million. So, who made the intergration of IDOL7 and Vertica possible. VCSY!! imo

    January 20, 2013

    Nobody has used IDOL 10 it seems, so how could a company have $900 million in revenues from vaporware? Somebody here is lying, but HP and Autonomy are pointing the finger at the other person. Whose nose is really growing?

    (more at url) http://arnoldit.com/wordpress/2013/01/20/vaporware-does-not-...

    ---------------------

    Recently Added Documents

    24th January, 2013

    Transitioning to a new Era of Human Information

    HP Autonomy IDOL

    Make all your information work for you "Using a single platform to understand 100% of information"

    Today's approach: single layer access

    The solution to accessing and processing all structured and

    unstructured information is a single layer approach that goes across

    your entire enterprise's one system that is able to process both

    structured and unstructured information together. The IDOL 10 next generation information platform is designed to understand and act on 100 percent of enterprise information in real time. This new platform promises dramatic business impact, as organizations can develop new applications that leverage the diversity and richness of human information combined with extreme structured data.

    IDOL 10 offers you a range of capabilities:

    * IDOL 10 provides a single processing layer for forming a

    conceptual, contextual, and real-time understanding of all forms

    of data, both inside and outside the enterprise.

    * The new platform combines Autonomy's infrastructure software

    for automatically processing and understanding unstructured

    data with HP's high-performance real-time analytics capabilities

    for extreme structured data.

    * Manage-in-Place technology indexes all data where it resides,

    eliminating copying requirements, storage costs, and hand-off risks.

    * The NoSQL interface provides a single processing layer for crosschannel

    analytics of structured and unstructured data.

    * Performance enhancements for the HP Analytics Platform include:

    sub-queries, database statistics, life cycle management, query

    optimization, data re-segmentation, and join filtering.

    * You benefit from enhanced scalability and contraction of

    clusters greater than 20x faster in cloud, virtual, and physical

    deployments.

    http://publications.autonomy.com/

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