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HP rallies 14%, trouncing broader sell-off

May 23, 2013: 11:26 AM ET

HP continues to have a great year.

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.

Related: Meg Whitman turnaround boosts HP

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.

Overhead: "Hewlett-Packard saved the market" $HPQ $QQQ Bullish

Thanks, Meg! $HPQ may help to minimize some of the damage to the Dow this morning. HP still up nearly 13% pre-market on earnings.

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).

always surprises me when a $HPQ happens, mkt crushed and someone still NEEDS to own hpq up 13%

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.

$HPQ No revs. growth & a very close eye on costs, endemic to this ER season. A 12% jump on hope or am I too harsh?

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.

A Nikkei-like day awaits the market. $HPQ can't keep up this pace. It'll be sold off. I like $22.8 close (guesstimate) at best.

Well SanDiegoTrader, only time will tell.

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Catherine Tymkiw
Catherine Tymkiw
News Editor CNNMoney

Catherine Tymkiw is a news editor at CNNMoney where she helps oversee breaking news coverage and futures planning. Previously, she was the investing editor. Prior to joining CNNMoney, she was the online editor at Crain's New York Business and has nearly two decades of reporting and editing experience. She tweets @ctymkiwcnn

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