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HP Soars as Dow Loses Early Gains

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After rising over 200 points minutes after the opening bell, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) fell into negative territory within the hour. The index currently sits just above breakeven, with little help from its components to push it back to its early-morning heights. Though there are some economic data points in play today, anticipation for next week's Federal Open Markets Committee meeting and any signs of changes to the current Fed monetary policy is palpable. But one Dow component stock is riding high despite the index's struggles.

Changes in computing
Hewlett-Packard (NYSE: HPQ  ) has been up and down over the past year, but is on the rise this morning following some positive news for investors -- sending shares up more than 4% so far this morning. In a shift away from static manufacturing procedures, HP has recently opened itself to using various operating systems, architectures, and other aspects of PC-building. Though PC users have historically had little choice beyond the Microsoft (NASDAQ: MSFT  ) and Intel (NASDAQ: INTC  ) combo within their machines, HP is moving away from that configuration.

HP just signed a deal with Google (NASDAQ: GOOGL  ) that will allow retailers to sell HP computers and printers with preprogrammed Google software like email and calendar applications.The move puts HP in a more competitive position as a shift from Microsoft-based operating systems has caused a drop in PC sales. Though the company has plenty of catching up to do, the addition of Google to its products may boost the sales growth needed to produce returns for investors.

The struggling PC maker is also embracing new processors from rivals of Intel, which allows the company to follow consumer trends to build the products users want. Since the company has steadily decreased its R&D spending, the new configurations provide a less expensive avenue for addressing customer needs.

These moves make HP more agile, and may pave the way for revenue growth, an important goal for the company that reported decreases in all segments of revenue for the previous quarter. CEO Meg Whitman has stated that revenue growth during fiscal 2014 is still a possibility, so investors will be watching closely.

So far, investors in Microsoft and Intel aren't all that concerned, with both stocks up in trading just after 11 a.m. EDT. However, both companies have had setbacks in the past year, with the big drop in overall PC sales recently pinned on Microsoft for producing an operating system that users don't want to buy. And Intel has battled back against competitors that took over market share it once held firmly.

The massive wave of mobile computing has done much to unseat the major players in the PC market, including HP. However, HP's rapidly shifting its strategy under the new leadership of Whitman. But does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor blip on its road to irrelevance? The Motley Fool's technology analyst details exactly what investors need to know about HP in our premium research report. Just click here now to get your copy today.

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