3 Reasons to Sell Dow Laggard HP
The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and consumer goods editor/analyst Austin Smith discuss topics across the investing world.
As part of our series "3 Reasons to Buy/Sell," we're taking a look at the risks and opportunities facing every stock in the Dow Jones Industrial Average. Hewlett-Packard is the second-longest-tenured technology stock in the index, but its days increasingly look numbered. A continuing sell-off in the company's shares has led to the company contributing just 1.34% of the index. Eric takes a look at three reasons investors would be best served avoiding HP. Of note, he sees financial metrics such as operating cash flow taking a dramatic turn in the wrong direction, struggles in HP's services business that will be hard to overcome, and a model that's failing across every geography. It's gotten so bad that Europe is HP's best-performing segment. To see Eric's full explanation of three reasons investors should consider selling HP, watch the video below.
The era of big data has arrived. To discover one company Fool analysts believe will rule this emerging area of technology, we've created a free report called "The Only Stock You Need to Profit From the NEW Technology Revolution." Inside the report we'll reveal a company that has gone on to gains of more than 200% since first recommended by the Fool. Best of all, it still has room to run. You can click here to access your report -- it's totally free.
At the time this article was published Austin Smithhas no positions in the stocks mentioned above.Eric Bleekerhas no positions in the stocks mentioned above. The Motley Fool owns shares of International Business Machines.Motley Fool newsletter services recommendF5 Networks. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.