Why Hewlett-Packard Stock Looks Like Good Value

HP's acquisition of EDS, low p-e ratio, and push into services have made it an attractive IT play

Hewlett-Packard (HPQ; recent price, 43) is a top-tier maker of computer hardware and printers that is growing by acquisition in services and software to become an even larger provider of information technology solutions. We believe that the advantages of larger scale and better balance between complementary hardware, software, and services segments include attracting customers seeking one-stop shopping, more recurring and stable revenue streams, better global market coverage, and, not least, a big opportunity to enhance profitability by cutting operational costs.

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