CHICAGO, Nov. 25, 2011 /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 Dell Inc. (Nasdaq: DELL), Hewlett-Packard Co. (NYSE: HPQ), Intel Corp. (Nasdaq: INTC), Microsoft Corp. (Nasdaq: MSFT) and Advanced Micro Devices Inc. (NYSE: AMD).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday's Analyst Blog:
Dell to Overshadow H-P Servers
Tech major Dell Inc. (Nasdaq: DELL) is looking to grow its share of the server market, something that could hurt Hewlett-Packard Co. (NYSE: HPQ) in the longer term. Dell missed its chance of becoming the leading PC shipment vendor after H-P's PC segment spin-off was called off by current CEO Meg Whitman.
The two companies saw their fortunes reverse in the last quarter, as Dell's server business did much better than H-P's. H-P has seen a few hurdles in the last few quarters. Even the recently concluded fourth quarter was lackluster. And now, we see H-P encountering another threat from its nearest competitor Dell.
Both companies have excelled in developing servers that bring the graphics processing unit (GPU) into the data center or high-performance computers (HPC). However, while H-P has mostly concentrated on the higher-end segment, Dell has been focused on the low end.
Yesterday, both Dell and H-P announced their newest technologies and ideas. H-P revealed a project named Odyssey, wherein the giant would implement the idea of combining the features of the UNIX operating system (OS) and its flagship x86 servers to provide a single server platform targeting the mission-critical computing segment, in which it has a rich experience of more than 25 years.
H-P reportedly is busy with the making of HP Integrity servers, HP NonStop systems and the HP-UX and OpenVMS operating systems. The yet-to-be released offerings feature Intel Corp.'s (Nasdaq: INTC) Xeon processors, Microsoft Corp.'s (Nasdaq: MSFT) Windows OS and LINUX OS.
Dell on the other hand, unveiled a suite of PowerEdge blade servers featuring the latest Opteron 6200 Series processors from Advanced Micro Devices Inc. (NYSE: AMD). Dell asserts that this line of products will be far more competent than H-P's Proliant line of servers. The newest offerings are expected to be energy efficient, high speed performance gadgets suitable for various enterprise applications.
As per statistics provided by the U.S. market research firm Gartner during the second quarter of 2011, H-P topped its peers both in respect of revenue generated and shipments made. We don't have details of the third quarter. But on the basis of recently concluded quarters of the respective companies, we can see that Dell has performed much better than H-P.
Server and networking revenue increased 13.0% year over year, driven by continued momentum in server virtualization. Dell is being prudent in providing mission-critical services and solutions around the server, creating competitive differentiation, richer configurations and generating higher profits.
On the other hand, H-P witnessed a decline of roughly 4% in its Enterprise Servers and Storage & Networking segment. The decline was mostly due to the lackluster server business, which according to the company was due to a slower economic environment.
Given the increasing competition, there is every possibility of H-P losing its leading market position over time.
H-P has a Zacks #5 Rank, indicating a short-term Strong Sell rating. Dell currently holds a short-term Buy rating, as indicated by the Zacks #2 Rank.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
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: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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 at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.