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Hewlett Packard Enterprise (HPE) Gains But Lags Market: What You Should Know

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Hewlett Packard Enterprise (HPE - Free Report) closed at $15.48 in the latest trading session, marking a +0.45% move from the prior day. This change lagged the S&P 500's 1.12% gain on the day. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.

Coming into today, shares of the information technology products and services provider had lost 6.78% in the past month. In that same time, the Computer and Technology sector gained 2.22%, while the S&P 500 gained 4.63%.

Investors will be hoping for strength from Hewlett Packard Enterprise as it approaches its next earnings release. The company is expected to report EPS of $0.45, down 2.17% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.82 billion, up 1.78% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.10 per share and revenue of $28.66 billion, which would represent changes of +7.14% and +3.15%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Hewlett Packard Enterprise. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Hewlett Packard Enterprise is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Hewlett Packard Enterprise has a Forward P/E ratio of 7.33 right now. This valuation marks a discount compared to its industry's average Forward P/E of 12.16.

Meanwhile, HPE's PEG ratio is currently 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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