This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Meg Whitman: HP's Surprise Turnaround Star

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Analysts, however, warn that, like Rome, the new HP won't be built in a day.

"Whitman appears to be taking the appropriate actions, in our view, but we don't expect to see a fundamental inflection point in the near term," explained Jayson Noland, an analyst at Robert W. Baird, in a note released on Thursday. "Whitman named cloud, big data and security as areas of strategic investment -- we see these areas as offering attractive growth, but execution matters given the level of competition."

Whitman herself acknowledges that HP's overhaul won't happen overnight. "I would say that we're at the beginning," she told CNBC on Thursday, adding that the company is about 10% to 15% down its turnaround path.

Nonetheless, Whitman deserves credit for halting the company's slide. Like a supertanker attempting a u-turn, long-term improvements will not happen immediately, although investors should be heartened by Whitman's first eight months in the job.

"The key takeaway is that HP's turnaround efforts appear to be progressing better than expected," explained Sterne Agee analyst Shaw Wu, in a note. "We believe HP has become a balance sheet story where improvements the company makes will likely be the biggest catalyst to shares as opposed to top-line growth, where expectations are fairly low."

Nonetheless, there are plenty of gaps in HP's product portfolio. Whitman has admitted that the company has not yet resolved its smartphone strategy, and, even with a Microsoft (MSFT) Windows 8 tablet planned for the back-to-school season, HP still needs to find a way to seriously compete with Apple's (AAPL - Get Report) iPad.

Overall, though, Whitman deserves credit for stopping the rot at HP and laying the foundation for recovery.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
AAPL $132.54 0.88%
CSCO $29.26 -0.58%
EBAY $59.72 -0.03%
HPQ $34.76 2.75%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs