NEW YORK (TheStreet) -- If there was ever any doubts as to who's running the show at Hewlett-Packard
(HPQ - Get Report) they were put to rest Thursday when CEO Meg Whitman added the title of "chairman" on her resume.
Whitman replaces Ralph Whitworth, who stepped down due to health issues.
Hewlett-Packard continues to be one of the best stories on the market in 2014. Shares are up 33% over the trailing 12 months and are up 24% year-to-date, outperforming the tech sector's 9% gains. The stock closed Thursday at $34.43, just 2% away from its 52-week high.
How Apple's Big Deal With IBM Hurts BlackBerry and Microsoft
Google Surges: What Wall Street's Saying
Taiwan Semiconductor's Ties to Apple Are a Double-Edged Sword
Meg Whitman has been the reason for Hewlett-Packard's resurgence. That she was chosen for chairman is a much-deserved vote of confidence. The company has kept both the CEO and chairman roles separate ever since the departure of former CEO Mark Hurd in 2010. Shares are still down 36% from their 2010 high.
But it's time to look forward. With Whitman now fully entrenched in HP's fabric, investors should expect continued improvements in both the company's revenue and profits.
The new title is nice to have. But it doesn't change anything with respect to Whitman's vision of efficiency and finding new growth areas. Operational expenses will continue to be trimmed and Whitman does not plan to rest until Hewlett-Packard plants its flag in more profitable areas such as software and services.
With the recent enterprise partnership
forged between rivals Apple
Whitman's vision of enterprise services growth is only going to get harder.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts