As markets around the globe remain steeped in red, one stock is bucking the trend: Hewlett-Packard (HPQ).
HP is riding the wave of Meg Whitman's turnaround plan. The CEO said she's "encouraged" by the results so far, but cautioned it will take some time.
The company reported earnings late Wednesday that topped notoriously low forecasts and issued an improved profit outlook. So, even though sales are still not quite up to par, investors are feeling pretty optimistic.
HP is still struggling in the mobile arena, which is dominated by Apple (AAPL) and Android maker Google (GOOG), but HP's stock performance suggests investors are giving Whitman a big vote of confidence that she's making all the right moves.
Shares of HP shot up more than 14% Thursday. The stock has been a stellar performer this year, rising more than 68% and making it one of the Dow's best performers.
StockTwits traders sure liked what they were seeing.
That's exactly what happened. HP was the only Dow component showing gains in early trading, which helped stem some of the bleeding. It also helped lift shares of fellow Dow techies IBM (IBM) and Cisco (CSCO).
Interesting, and apparently, true. Even with U.S. stocks trying to claw back, the overall market is tucking in for a down day. But HP, which hasn't always been a darling with investors (understatement), seems to have rejoined the popular crowd.
Not everyone was quite as optimistic though.
I wouldn't say you're being too harsh. It's tough to get excited when estimates are at rock bottom. However, I think investors also like hearing Whitman's honesty about the turnaround plan. Add to that, the fairly upbeat outlook and it could be time to give HP another chance.
Well SanDiegoTrader, only time will tell.
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, and Abbott Laboratories, La Monica does not own positions in any individual stocks.
When your stock is trading at just 4 times earnings estimates for the next year, you'd think that the share price couldn't get much lower -- but Hewlett-Packard (HPQ) is proving to be the ultimate value MOREPaul R. La Monica - Sep 27, 2012 1:01 PM ET
Running the fiscally challenged state of California might have been an easier task for Meg Whitman than trying to turn around Hewlett-Packard.
That's what she would be doing right now if she hadn't lost the Golden State gubernatorial race to Jerry Brown in 2010. Alas, she has to "settle" for the more lucrative but arguably more thankless job as CEO of troubled HP.
Hewlett-Packard (HPQ) shares are down nearly 25% this year, MOREPaul R. La Monica - Jun 27, 2012 1:00 PM ET
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