Back to top

Analyst Blog

Hewlett Packard Company (HPQ - Analyst Report) has grabbed yet another deal. This time it’s from Niagara Health System (“NHS”). This large amalgamated hospital based in Ontario has selected HP Networking solutions to support its service delivery system. HP will help them to optimize network performance, while simplifying their IT infrastructure.

NHS aims to ensure the availability of critical medical applications in order to meet the healthcare demands of the region and also secure network access across its sites. For this they require a reliable and flexible infrastructure that can be centrally managed.

The efficient functioning of these hospitals required high-speed data transmission across their hospital system which needs to be backed by a good IT infrastructure and a robust network. This is where NHS found the HP 12500 and HP 8200 zl Switch Series to be the most applicable.

HP has been winning deals consistently over a period of time. Previously, HP announced that Bond International Software Group entered into a contract to use a technology from Autonomy, which was acquired by HP in Aug 2011. Per the contract, H-P will provide its Autonomy Intelligent Data Operating Layer (IDOL) server to enhance its Bond Adapt platform.

Hewlett-Packard is extending its enterprise systems management leadership position into the application, service management and business process management markets. It also believes that the digital content being developed will create a $1.2 trillion addressable market opportunity.

HPQ is gradually increasing its customer base across verticals and geographies. Some of its recent wins have come from emerging markets like Brazil, Russia, India and China (the BRIC countries). This apart, the company has also focussed on growth areas such as Digital Printing, which is mainly used by companies for enhancing their image outputs, Mobile Computing and Next-Generation Data Center handling. These are some of the key growth areas the company is focusing on to further improve its business volume in 2013.

Although the company’s profitability is affected by the PC market slump, better cost control efforts and new product launches in the non-PC area bode well for the company.

Currently, HPQ has a Zacks Rank #2 (Buy). Investors may also consider technology stocks such as Symantec Corp. (SYMC), SanDisk Corp. (SNDK - Analyst Report) and Pegasystems Inc. (PEGA - Snapshot Report), which have a Zacks Rank #1 (Strong Buy) and  Western Digital Company (WDC - Analyst Report) which has a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
TRAVELCENTE… TA 11.84 +6.38%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%