Why Hewlett-Packard Is Poised to Underperform

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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 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-Packardfacts

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.

The article Why Hewlett-Packard Is Poised to Underperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Accenture. The Motley Fool owns shares of International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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