CHICAGO, April 11, 2014 /PRNewswire/ --Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Hewlett-Packard (NYSE:HPQ-Free Report), Juniper (NYSE:JNPR-Free Report), Alcoa (NYSE:AA-Free Report), IBM (NYSE:IBM-Free Report) and Oracle (NYSE:ORCL-Free Report).
Today, Zacks is promoting its 'Buy' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
H-P Resolves with DOJ, SEC for $108M
Hewlett-Packard (NYSE:HPQ-Free Report) resolved its long-standing federal investigation by paying $108 million to the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC). H-P's questionable practices of securing and retaining government contracts in Poland, Mexico and Russia were the prime reasons for the investigations.
Both the federal agencies were investigating the second-largest PC vendor for violation under the U.S. Foreign Corrupt Practices Act (FCPA). The Act deems any payments made to foreign government officials to secure or retain business as illegal.
Allegedly, in Russia, H-P paid approximately $2 million between 2000 and 2007 to retain a certain contract with the federal prosecutor's office. These dealings took place through various agents and shell companies. Similar practices were followed in Poland and Mexico where H-P officials paid bribes worth $600k and close to $1 million, respectively, to obtain government contracts.
H-P claimed that the officials conducting these malpractices had left the company and agreed to take on a strong compliance and internal anti-corruption measure to ensure that such incidents are not repeated.
H-P, however, is not the sole offender since bellwethers such as Juniper (NYSE:JNPR-Free Report) and Alcoa (NYSE:AA-Free Report) have come under the scanner for similar malpractices. Reportedly, Alcoa settled its dispute by paying $384 million in January this year.
From a broader perspective, despite the FCPA keeping a keen eye on malpractices of U.S. companies on foreign soil, such incidents are not rare. Moreover, the companies are usually charged with penalties that are miniscule compared with the revenues generated from these contracts. Large corporations generally pay and move on.
In H-P's case, though the current settlement will affect short-term results, the company's restructuring plans and turnaround strategies will continue to improve its cash flows. We remain encouraged by H-P's increased focus on high-margin software and services, which is expected to boost results over the long term. H-P's decision to take a software-and-service centric approach is a strategic move, in our view.
The cannibalization of traditional PCs by tablets and other mobile Internet devices makes this transition imperative. H-P is witnessing growth across its converged infrastructure and the emerging area of software-defined data centers. Moreover, solid demand from its cloud, security and big-data solutions and services are expected to drive revenue growth.
Nonetheless, continuing macroeconomic challenges, tepid IT spending and competition from IBM (NYSE:IBM-Free Report) and Oracle (NYSE:ORCL-Free Report) remain headwinds, going ahead.
Currently, H-P sports a Zacks Rank #2 (Buy).
Today, Zacks is promoting its 'Buy' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on HPQ - FREE
Get the full Report on JNPR - FREE
Get the full Report on AA - FREE
Get the full Report on IBM - FREE
Get the full Report on ORCL - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumedthat any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein andis subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.
