3 Reasons to Buy HP
May 23rd 2012 10:16AM
Updated May 23rd 2012 10:18AM
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 "3 Reasons to Buy/Sell" series, we're taking a look at the risks and opportunities facing every stock in the Dow Jones Industrial Average. Having already examined three different arguments to sell HP, Eric now takes a look at three reasons HP could potentially become a buy and keep its tenuous placement as one of the Dow Jones technology stocks. Eric first lists valuation as a reason to consider buying HP, and notes that the company trades at just four times operating profit. Further, while the company's services business is flailing, he believes recent changes could cut out costs and move toward making the unit more profitable in coming years. Finally, Eric likes that Meg Whitman is at least attempting to shake up the status quo. To see Eric's list of three reasons to buy HP, watch the video below.
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At the time this article was published Austin Smith has no positions in the stocks mentioned above. Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of IBM. 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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