First On Fast: Inside H-P's Transformation
Over the past 3 months shares of Hewlett-Packard have surged 30%. And the stock has been on a tear for most of the year.
Of course if you watch Fast Money all the time you knew that, already. Long H-P is a trade Guy Adami has been all over for months.
But five years ago, you would have been hard pressed to find this stock attractive. At the time H-P was in shambles. Former CEO Carly Fiorina had just been forced out and the company was struggling to digest its acquisition of Compaq.
But five years later it's a very different story. Today H-P is one of the most successful IT companies in the world. Revenue for the fiscal year starting Nov. 1 will likely total between $117 billion and $118 billion, according to Thomson Reuters.
"H-P's best days are ahead of it, not behind it," says CEO Mark Hurd
Hurd is probably a name you know – he’s very much the face of the company. But he has a secret weapon in the guise of Todd Bradley, an executive VP – who is largely responsible for Hewlett-Packard becoming the world's leading seller of PCs, edging out longtime rival Dell
In the PC segment, Bradley "has been able to do some incredible things with a division that most people thought, before he came on board, couldn't be fixed," says veteran tech analyst Rob Enderle. "He appears to be on a fast track."
In fact he’s lately been called the most likely insider to succeed Hurd one day, writes The Mercury News.
And on Friday Bradley talked with CNBC’s Jim Goldman about a brand new alliance with Beats Electronics and his plans to introduce a special music oriented entertainment laptop.
"It's a continuation on our focus of making computers personal," says Bradley. "This notebook will have the finest music reproduction in the world and give people the best audio output in the marketplace." The new item will cost about $2200.
We also talked with Bradley about his outlook for the rest of the year.
"We're cautiously optimistic about the holiday season," Bradley tells us. "Clearly Windows 7 will be a driver and I think it will be one of many things that inspires people to buy PC's for the holidays."
What’s the trade?
I like H-P, says Guy Adami. It’s not a fast money trade but I like it as a slow and steady growth stock for the portfolio.
I agree entirely, echoes Joe Terranova. This stock could very well surprise you.
Check out our entire interview with Bradley. Watch the video above.
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