PC Sales Spike 40% for the week on Windows 7 (HPQ, DELL)

The big jump in the chart on the left is the Windows 7 effect that PC makers Hewlett-Packard Company (NYSE:HPQ) and Dell Inc. (NASDAQ:DELL) have been waiting for.

Data for the week ending October 24th, which included three days of Windows 7 sales, reflect PC sales jumping 40% yoy.

Which PC Maker should you invest your hard earned dollar in - HPQ or DELL?

The case for DELL:

Two Words summarize DELL - Balance Sheet. With 12B in cash and 3.44B in debt, their war chest is looking pretty nice. With a Forward P/E of just 11.18, the stock is trading pretty cheap right now at $14.45 a share.

The problem with DELL is they need to put some of that war chest to use in advertising. Their latest TV spots  just aren't getting it done. Bring back the Dude, you're getting a Dell guy.

The case for HPQ:

Hewlett Packard (HPQ) is the number one PC seller in the market. With a comprable Forward P/E ratio to Dell, currently 11.10, the stocks have similiar valuations. However, HPQ is the best of breed stock.

What I don't like about HPQ is the stock is just 2 points away from a 52 week high, which adds some risk when you consider adding it to your portfolio.

The light at the end of the tunnel is Windows 7. HPQ is the leader, and with Windows 7 I think a lot of analysts are underestimating their growth potential.

HPQ was prepared for the Windows 7 release like no other PC Maker. If you haven't you seen the HP Touchsmart using Windows 7 touchscreen functionality, check it out here. This is going to blow the competition away.