Seagate Technology PLC (STX), International Business Machines Corp. (IBM), Hewlett-Packard Company (HPQ): Three Technology Companies Worth Watching

One example is Hewlett-Packard Company (NYSE:HPQ)’s revolving door of CEOs, along with some bad acquisitions that were made. The company’s problems have also led to several rounds of employee lay-offs where literally thousands of highly skilled techies found themselves without a job. Yet, while the declining market for PCs may seem to add a bad light to Hewlett-Packard Company (NYSE:HPQ) as a potential investment, there could be some good arguments for adding this company’s shares to a portfolio.

One reason is that the company’s share price has already essentially been beaten up, giving it the opportunity to move upward in the future. This means that unless things get a whole lot worse for Hewlett-Packard Company (NYSE:HPQ), there could be some good upside here.

In addition, a large part of HPs 2012 losses were due to the writing off of some of the company’s bad acquisitions. Therefore, when looking solely at the company’s cash flow, Hewlett-Packard was actually profitable. That, combined with the fact that consumers are continuing to use PCs in some fashion, it is unlikely that even the newer devices like tablets will completely replace the personal computer any time soon.

Currently, Hewlett-Packard Company (NYSE:HPQ) is also paying its investors a dividend of $0.53 per share, which equates to a dividend yield of 2.60%. This could mean a nice solid income to shareholders — even while waiting for the shares to appreciate.

The bottom line

While International Business Machines Corp. (NYSE:IBM) and Hewlett-Packard Company (NYSE:HPQ) may have some work to do in order to remain competitive, Seagate Technology PLC (NASDAQ:STX) appears to be off and running with no end in sight in terms of opportunities to continue its growth. And this could provide a nice reward for Seagate’s investors — even those who did not jump in before the company’s most current growth spurt.

With a healthy balance sheet and recent results that are reflective of strong operational performance, Seagate could be a real winner for investors who seek growth and income over both the short and long run time frames.

The article 3 Technology Companies Worth Watching originally appeared on Fool.com and is written by Nauman Aly.

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