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Stock Analyst Update

Unisys Is Stuck between a Rock and a Hard Drive

Until it solves its dilemma, investors should avoid the stock.

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Unisys  (UIS) is a dinosaur in a modern-day world.

The company's stock tanked Thursday, falling 37% to 14 9/16 after the firm warned that second-quarter earnings would fall far short of analysts' estimates. This disappointment is the latest in a string for Unisys shareholders and results from both the decline of mainframe computers and the company's inability to adapt quickly to the changing nature of the information-technology consulting industry.

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