HEWLETT-PACKARD (HPQ, $21) announced that the company won a three-year, $500 million contract to supply the Army with commercial servers, workstations, desktops, notebooks, storage systems, networking equipment and related IT services. The news is certainly music to Hewlett Packard's ears, as the company has been struggling with recent criticism about the 2002 merger with Compaq.
Hewlett-Packard has a forward PE of 14 and is trading at 0.8 times sales. The company is at 1.6 times book and has a dividend yield of 1.7%. Fundamentally, Hewlett-Packard looks strong, and thus, deserves our attention. We will keep a close eye on this company. |
