Back to top

Image: Bigstock

Hewlett Packard Enterprise (HPE) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Hewlett Packard Enterprise (HPE - Free Report) closed at $13.19, marking a +1.15% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.03%.

Coming into today, shares of the information technology products and services provider had lost 11.17% in the past month. In that same time, the Computer and Technology sector lost 5.66%, while the S&P 500 lost 6.03%.

Wall Street will be looking for positivity from Hewlett Packard Enterprise as it approaches its next earnings report date. On that day, Hewlett Packard Enterprise is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 2.13%. Meanwhile, our latest consensus estimate is calling for revenue of $6.97 billion, up 1.1% from the prior-year quarter.

HPE's full-year Zacks Consensus Estimates are calling for earnings of $2.02 per share and revenue of $28.23 billion. These results would represent year-over-year changes of +3.06% and +1.59%, respectively.

Any recent changes to analyst estimates for Hewlett Packard Enterprise should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.67% higher. Hewlett Packard Enterprise is currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Hewlett Packard Enterprise has a Forward P/E ratio of 6.46 right now. For comparison, its industry has an average Forward P/E of 31.58, which means Hewlett Packard Enterprise is trading at a discount to the group.

Also, we should mention that HPE has a PEG ratio of 1.73. 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.58 as of yesterday's close.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hewlett Packard Enterprise Company (HPE) - free report >>

Published in