Back to top

Analyst Blog

Hewlett-Packard Co.’s (HPQ - Analyst Report) Enterprise Services unit received two task orders from the U.S. Army Human Resources Command (AHRC) for an undisclosed sum. The task orders require H-P to continue providing information technology (IT) services to improve the agency’s recruitment procedure and overall departmental operations in a cost-effective manner. The U.S. agency has been assigned the task of managing careers of potential army soldiers.

Under the first task order, H-P will continue to manage IT infrastructure for AHRC with the help of its data center services for another three years. H-P has been providing this support since past 20 years. The data center service includes support for hardware (PCs, laptops and printers), networking, enterprise architecture and help desk. The new task order would also require H-P to extend its services for the U.S. Army Cadet Command and Army Recruiting Command, in addition to AHRC.

Under the second task order, H-P will help AHRC in hiring/recruiting personnel through its Applications Services. With this service, AHRC can manage applications from prospective candidates and select suitable candidates for the job. The service also allows AHRC to simplify the process of online applications.

Last week, H-P’s Enterprise Services unit was chosen by the U.S. Department of Homeland Security Department to provide call-center support for its U.S. Citizenship and Immigration Services (‘USCIS’) arm. The 5-year task order was valued at $220.5 million.

Though deal wins under the Enterprise Services unit is pretty frequent, the segment’s financial performances are not encouraging. In the recently concluded first quarter 2013, the segment registered a year over year revenue decline of 7.0%. But during the call, H-P mentioned that it will continue to focus on strategic enterprise services business, which includes cloud, application modernization, security and information management, and analytics. We find H-P’s commentary encouraging and believe that the continuous deal wins will lead to better growth prospects for the segment.

Though further indication of PC market slump in 2013, declining revenues and competition from Dell Inc. are concerns, back-to-back product launches and growing exposure into enterprise storage space are encouraging.

Currently, H-P has a Zacks Rank #2 (Buy). Other technology stocks that warrant consideration are Symantec Corp. (SYMC - Analyst Report) and Synopsys Inc. (SNPS - Analyst Report).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

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 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
SUPER MICRO… SMCI 26.62 +8.70%
CENTURY ALU… CENX 26.77 +7.17%
BANCO DO BR… BDORY 16.44 +5.86%
CANADIAN SO… CSIQ 37.51 +5.84%
VIPSHOP HOL… VIPS 207.10 +5.32%