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

How will Hewlett-Packard's enterprise software stack up against competitors?

By Chris Lau for Kapitall.

Shares of Hewlett-Packard (HPQ) are tearing upwards. Since bottoming in the low $20’s last October, the stock hit a high of $35 before pulling back recently to $33.91. While concurrently making strategic moves to strengthen its PC business, HP is settling its legal battles to lower uncertainty for the company.

HP reportedly settled shareholder suits related to its expensive acquisition of Autonomy. When HP bought Autonomy, it paid $11.1 billion, only to write down nearly $9 billion. HP, along with the shareholder attorneys, will now go after Autonomy executives, notably former CEO Mike Lynch.

Autonomy still strategic

Though the sale price HP agreed to for Autonomy was excessive, enterprise software in the Big Data space offers substantial growth in the next decade. One need only look at Tableau Software (DATA) and Salesforce.com (CRM) to appreciate how important analytics and cloud software are in the enterprise software space.

Tibco Software (TIBX) is struggling to boost sales for Spotfire, and so are its shares. IBM (IBM) is also developing Watson software as an enterprise solution.

Conclusion

HP has yet to report stellar growth for Autonomy software. Still, it is clear that enterprise management solutions for IT, legal and compliance, and marketing divisions offer investors potentially good returns over the next few years.

With the way HP shares moved up in the last year, investors are already betting HP’s enterprise growth will succeed.

Disclosure: Author holds a position in Tibco Software.

Who do you think will outperform in the enterprise software space? Use the links below to start your own analysis.

Click on the interactive chart to view data over time. 

 

1. Salesforce.com ( CRM, Earnings, Analysts, Financials): Provides customer and collaboration relationship management (CRM) services to various businesses and industries worldwide. Market cap at $38.38B, most recent closing price at $63.91.

 

1 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

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs