Tomahawk, WI 10/15/2013 (BasicsMedia) – Hewlett-Packard Company (NYSE:HPQ) has not enjoyed the recent days of its existence as a stock. The company has fared rather badly and this has been well shown every time it has gone ahead to release its latest quarterly financials. Many analysts had given up on this stock which owes a great deal to the revenue it gets from PC sales, which have gone down drastically. But now there seems to be a different view that analysts are showing towards HPQ, and some are even saying the stock is not as unattractive as they thought? Are their reasons justified?

 HPQ Seeks to Stabilize Then Accelerate Revenue

 HPQ has been facing a herculean task with regard to turning its fortunes around. It has embarked on this path for a very long time, but the results have not matched their efforts. Its CEO, Meg Whitman, has said that the company needs not less than 5 years to see a complete change in terms of HPQ’s fortunes being turned around. The company has said that it is working on stabilizing revenues first before anything else. It recently announced that it is on the right track in achieving this goal and it is looking at 2014 as the year when this will materialize.

 Once HPQ succeeds in stabilizing its revenue, the next goal will be to come up with ways of accelerating the growth of the same. This is a goal which it has set for 2015 onwards. I think what has made investors and analysts to have a change of heart where HPQ is concerned is the announcement which the company made to the effect that it is on the right track with the two goals. Thus far, HPQ management has been successful in strengthening the balance sheet of this huge company. It still continues to develop new and innovative products for the market.

HPQ Now Focused on Growth Opportunities

 The reason why investors are showing optimism where HPQ is concerned is due to the company’s focus on growth opportunities. It seems that the company is not fixed any more on putting out the fires, but is looking at ways of growing its revenue. It is true that the company has lost close to half of its value since 2010. It may be the most storied firms to have ever come out of the famed Silicon Valley. In the past, when its problems started being published, HPQ was too focused on plugging holes and this led to its dethroning as the leader in Silicon Valley.

 Tech stocks are too sensitive. One which struggles like HPQ has to focus on the bigger picture and not waste too much time in fixing problems. It still needs to continue developing its innovative and new products, lest it gets left behind by its peers and is forced to play catch-up consistently. HPQ has struggled to navigate the shift from PCs and printers to software and services, which its competitors such as IBM have managed. But the new shift in terms of thinking appears to suggest that HPQ has learnt from its mistakes and analysts are impressed.

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