Hewlett-Packard Company (HPQ): Relational Remains Concentrated

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Bottom line
Relational runs a heavily concentrated portfolio and has big bets on Hewlett-Packard Company (NYSE:HPQ) and Hess Corp. (NYSE:HES). I think the HP turnaround will take some time and would suggest waiting on signs of a more solid plan before jumping into the stock. On the other hand, Hess appears to be a solid bet on oil and gas that is making key strides to unlock shareholder value.
Meanwhile, Relational’s other two big bets appear to be heavily tied to the broader economy. Illinois Tool Works Inc. (NYSE:ITW)appears to be a slow growth story over the interim, yet, Ingersoll appears to be trading on the cheap side and has notable housing recovery tailwinds that can lift the stock higher. I’d consider adding Ingersoll as an investment, but would hold off on Illinois.

Marshall Hargrave owns shares of Hess.. The Motley Fool recommends Illinois Tool Works.

The article Relational Remains Concentrated originally appeared on Fool.com.

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