Updated from 3:54 p.m. EST

In an effort to head off a further decline in its stock price,

Hewlett-Packard

(HWP)

said Thursday that its shares are undervalued and that it still expects second-quarter revenues to grow by 12% to 15%.

Shares of the computer maker gained 3/4, or 1%, to close at 132 3/4 Thursday. The stock tumbled 13% in just the last week.

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The company said its stock is probably down because shares of

Agilent Technologies

(A) - Get Report

, to be spun off by H-P, are being distributed in late May or early June. As a result, there may be confusion surrounding H-P's valuation. H-P currently owns 84% of Agilent.

"If you do the math, after eliminating the embedded value of Agilent, H-P's core computing and imaging business, trading at a mid-session multiple of 25, is undervalued for a major technology company growing in the mid-teens," Steve Pavlovich, H-P's director of investor relations, said in a statement.

H-P will report its second-quarter earnings in the middle of May. For the first quarter, H-P reported a revenue increase of 14%, to $11.67 billion from $10.24 billion a year earlier. At the time of the release of first-quarter numbers, the company also said that it expected to come in at the high end of the 12% to 15% revenue growth range that it had previously signaled for fiscal year 2000.