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The Zacks Computer and Technology sector has fallen on tough times in 2022 amid a hawkish pivot from the Fed, down more than 30% and widely lagging behind the S&P 500.
A widely-recognized name in the realm, Hewlett Packard Enterprise Company (HPE - Free Report) , is on deck to unveil Q4 results on November 29th, after the market close.
Hewlett-Packard Enterprise was formed due to the split of Hewlett-Packard Company into two separate entities – one focusing on the enterprise-facing hardware and service business and the other focusing on the consumer-facing computer and printer segments.
HPE now focuses on the enterprise and service business-oriented company. In addition, the company carries a Zacks Rank #4 (Sell) with an overall VGM Score of C.
How does everything stack up for the computer giant heading into the print? Let’s take a closer look.
Share Performance & Valuation
HPE shares have been a brighter spot in an otherwise dim market in 2022, up a modest 2.7% and easily outpacing the S&P 500.
Image Source: Zacks Investment Research
Over the last month, not much has changed; HPE shares have continued to outperform the market, up more than 15%.
Image Source: Zacks Investment Research
The company’s forward earnings multiple currently sits at 10.9X, just a tick above its 10.7X five-year median and reflecting a 52% discount relative to the Zacks Computer and Technology sector.
HPE sports a Stye Score of an A for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish in their earnings outlook over the last several months, with three negative earnings estimate revisions hitting the tape. Still, the Zacks Consensus EPS Estimate of $0.57 indicates a 9.6% Y/Y uptick in earnings.
Image Source: Zacks Investment Research
The company’s top-line looks to improve marginally; the Zacks Consensus Sales Estimate of $7.4 billion suggests a Y/Y increase of roughly 0.9%.
Quarterly Performance
HPE has posted mixed earnings results across its last four releases, exceeding EPS estimates twice. In its latest release, the company reported earnings in line with expectations.
Revenue results paint a more negative picture; HPE has fallen short of sales estimates in five consecutive quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
HPE shares have outperformed the general market across several timeframes in 2022, indicating that buyers have been consistently present.
The company’s shares aren’t expensive by any stretch, with its forward earnings multiple just a tick above its five-year median but well below the Zacks Computer and Technology sector average.
Analysts have been bearish in their earnings outlook, with estimates suggesting Y/Y upticks in both earnings and revenue.
Further, the company has posted mixed bottom-line results as of late and has fallen short of revenue estimates in five consecutive quarters.
Heading into the release, Hewlett Packard Enterprise Company (HPE - Free Report) is a Zacks Rank #4 (Sell) and carries an overall VGM Score of a C.
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Hewlett Packard Q4 Preview: Can Shares Stay Hot?
The Zacks Computer and Technology sector has fallen on tough times in 2022 amid a hawkish pivot from the Fed, down more than 30% and widely lagging behind the S&P 500.
A widely-recognized name in the realm, Hewlett Packard Enterprise Company (HPE - Free Report) , is on deck to unveil Q4 results on November 29th, after the market close.
Hewlett-Packard Enterprise was formed due to the split of Hewlett-Packard Company into two separate entities – one focusing on the enterprise-facing hardware and service business and the other focusing on the consumer-facing computer and printer segments.
HPE now focuses on the enterprise and service business-oriented company. In addition, the company carries a Zacks Rank #4 (Sell) with an overall VGM Score of C.
How does everything stack up for the computer giant heading into the print? Let’s take a closer look.
Share Performance & Valuation
HPE shares have been a brighter spot in an otherwise dim market in 2022, up a modest 2.7% and easily outpacing the S&P 500.
Image Source: Zacks Investment Research
Over the last month, not much has changed; HPE shares have continued to outperform the market, up more than 15%.
Image Source: Zacks Investment Research
The company’s forward earnings multiple currently sits at 10.9X, just a tick above its 10.7X five-year median and reflecting a 52% discount relative to the Zacks Computer and Technology sector.
HPE sports a Stye Score of an A for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish in their earnings outlook over the last several months, with three negative earnings estimate revisions hitting the tape. Still, the Zacks Consensus EPS Estimate of $0.57 indicates a 9.6% Y/Y uptick in earnings.
Image Source: Zacks Investment Research
The company’s top-line looks to improve marginally; the Zacks Consensus Sales Estimate of $7.4 billion suggests a Y/Y increase of roughly 0.9%.
Quarterly Performance
HPE has posted mixed earnings results across its last four releases, exceeding EPS estimates twice. In its latest release, the company reported earnings in line with expectations.
Revenue results paint a more negative picture; HPE has fallen short of sales estimates in five consecutive quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
HPE shares have outperformed the general market across several timeframes in 2022, indicating that buyers have been consistently present.
The company’s shares aren’t expensive by any stretch, with its forward earnings multiple just a tick above its five-year median but well below the Zacks Computer and Technology sector average.
Analysts have been bearish in their earnings outlook, with estimates suggesting Y/Y upticks in both earnings and revenue.
Further, the company has posted mixed bottom-line results as of late and has fallen short of revenue estimates in five consecutive quarters.
Heading into the release, Hewlett Packard Enterprise Company (HPE - Free Report) is a Zacks Rank #4 (Sell) and carries an overall VGM Score of a C.