HP Inc. ( HPQ Quick Quote HPQ - Free Report) recently made a few important announcements regarding its strategic initiatives in line with the industry’s evolution at one of its most significant partner event, Executive Forum 2018, in the Americas. The announcements included the incorporation of “premium features and expressive designs into its convertible, notebook and desktop PCs”. The company also introduced a new range of notebooks, displays and desktops called HP Pavilion Gaming to address the requirements of gamers. Additionally, HP announced the expansion of its “A3 multifunction printer line, now including new PageWide A3 skus for both transactional and contractual channels with external finishing”. It entered into a partnership with ImageNet Consulting, LLC for improvement of efficiency of A3 product line as well. Notably, post the split from the parent company — Hewlett-Packard Company — in November 2015, HP has been focusing on product innovation & differentiation, pricing, and marketing and sales activities to trigger demand for its PC and Printing products in the market. The company has generated high returns for investors over the past year. In a year's time, the stock has appreciated 18.7% outperforming the S&P 500's gain of 13.8%. Meanwhile, HP’s initiatives seem to be paying off. This is evident from a report by IDC which states that in fourth-quarter 2017 the company’s PC shipments registered the seventh quarter of consecutive year-over-year growth after witnessing several quarters of decline. Additionally, Gartner and IDC believes that the PC industry is moving toward stabilization, which is another positive for the company. Moreover, the company’s acquisition of Samsung Electronics’ printer business bodes well for its printing segment, with the addition of 6,500-plus printing patents owned by Samsung. HP’s initiatives toward fortifying its 3D printing business capabilities are also encouraging. Still, the company lags behind 3D Systems ( DDD Quick Quote DDD - Free Report) and Stratasys ( SSYS Quick Quote SSYS - Free Report) . Nevertheless, HP’s initiatives are reflecting in its impressive financials. In the past quarter, the company witnessed sixth consecutive revenue growth after witnessing a prolonged period of decline. Going ahead, we expect this Zacks Rank #2 (Buy) stock to perform even better backed by its strategic initiatives. Key Pick Another stock in the technology sector worth considering is Western Digital Corporation ( WDC Quick Quote WDC - Free Report) sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Western Digital’s long-term earnings growth rate is projected at 19%.
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