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Stock Strategist

Don't Sell Those HP Shares Just Yet

After Mark Hurd's sudden departure, Hewlett-Packard shareholders need to examine these four issues to determine whether it's best to sell or hold.

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Executive ousters, such as Mark Hurd's recent dismissal from  Hewlett-Packard (HPQ), make for great headlines. Watching highly paid CEOs or other top executives step down in a flurry of scandal can elicit a certain amount of schadenfreude. But just because a news story hits the front page doesn't necessarily mean investors should head for the exits.

In many cases, the departure of a CEO is nothing but a blip on the radar, and the firm gets back to business and puts the ordeal behind it.  Boeing (BA) let go of CEO Harry Stonecipher in 2005 after his admission of having a relationship with a female executive. The firm has mostly flourished since then with Boeing shares up 19.5% during this time compared with a 6.6% decline in the S&P 500 for the same period.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.