Hewlett Packard looks past the PC
The tech giant looks for a new leader - and new areas of leadership.
C-Suite woes
But recent management issues are weighing down the stock.
Expect a continued bumpy ride for the stock, says Edward Jones analyst Bill Kreher, as Hurd "is credited with HP's success over the past five years."
Expect a continued bumpy ride for the stock, says Edward Jones analyst Bill Kreher, as Hurd "is credited with HP's success over the past five years."
The transition to a new leader also comes as the company faces other management questions. The board was criticized for offering Hurd a golden parachute. And
HP also recently paid $55 million to the Justice Department to settle claims it had offered improper payments to obtain business from federal agencies.
So should you avoid the stock? You might come to that conclusion -- if the shares were richly priced. But HP "is still a fundamentally strong company," Forester says. And at a price/earnings ratio of just 8, he still finds it "attractive."
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Last updated November 11 2010: 5:59 PM ET
Source: UBS, Edward Jones, Morningstar, Bloomberg, Morgan Stanley, company filings
Stock performance figures are from Aug. 6 (the day after Hurd announced his resignation through Sept. 22.
Stock performance figures are from Aug. 6 (the day after Hurd announced his resignation through Sept. 22.
