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HPE Aruba Expands Clientele: Should You Buy, Hold or Sell the Stock?
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Hewlett Packard Enterprise (HPE - Free Report) shares have returned 12.8% year to date, underperforming the Zacks Computer - Integrated Systems industry’s growth of 16.2%. Macroeconomic uncertainties and geopolitical issues have kept the broader stock market highly volatile this year so far, and HPE stock has not been spared.
Despite these short-term challenges, Hewlett Packard Enterprise's long-term prospect seems bright as the company continues to gain customers for its products and solutions. For instance, HPE’s Aruba Networking recently upgraded advanced secure connectivity at Nobu Hotels’ select locations.
Hewlett Packard Enterprise equipped Nobu Hotels with its network infrastructure that is built on HPE Aruba and uses Zero Trust measures. It has installed artificial intelligence (AI)-based wired, wireless and SD-WAN solutions for Nobu Hotels to enhance guest experience and ensure constant connectivity and security.
The Aruba deployment will involve the setup of HPE Aruba Networking Central, HPE Aruba Networking ClearPass and HPE Aruba Networking User Experience Insight. These solutions will enhance the connectivity of mobile, IoT devices and AI-based applications. Accommodations, including door automation, security cameras, digital voice assistants, lighting, window blinds and in-room orders, will be installed. The solution will also be used to simplify the work of hospitality staff so they can focus better on customer service.
Hewlett Packard Enterprise Company Price and Consensus
The rising adoption of Aruba Networking by organizations worldwide can be credited to the ongoing enhancements that HPE is continuously making to improve the solution's capabilities. So far this year, HPE added two new features to Aruba Networking.
Hewlett Packard Enterprise added GenAI LLM models in HPE Aruba Networking Central’s search feature to improve its accuracy. The company also launched HPE Aruba Networking Enterprise Private 5G, making HPE the world’s first company to provide Wi-Fi and private 5G solutions together.
Additionally, the pending acquisition of Juniper Networks (JNPR - Free Report) is poised to strengthen HPE's networking portfolio, enabling the company to offer comprehensive solutions that integrate networking, security and cloud services.
These enhancements in Aruba Networking’s capabilities will help Hewlett Packard Enterprise in acquiring new clients. So far this year, the Aruba Networking solution has gained several clients for HPE, including Berger Paints, Nice Brazil, the city of Carmel, Royal Jaarbeurs, Houston Airports, Bethesda Health Group, University of Maryland and Dedini S/A Indústrias de Base.
HPE Enhancing Aruba Networking Competitiveness
By continuously enhancing Aruba Networking’s capabilities, Hewlett Packard Enterprise has been able to gain a competitive advantage in edge networking over its long-term competitor, Cisco (CSCO - Free Report) , in the networking market.
Cisco is a networking company that is more focused on the security side of networking and AI. HPE has now combined WiFi, compute, storage, SaaS and its financial services to deliver the most comprehensive edge to cloud architecture.
Hewlett Packard Enterprise’s other formidable competitor in the networking space is Dell Technologies (DELL - Free Report) . Although both companies target enterprise customers, the modus operandi of installing the networking architecture is different for both players.
While Dell’s architecture is based on open networking that focuses on separating the hardware from the operating system, HPE is based on zero trust security, wireless edge-to-cloud and unified infrastructure. The two different types of approaches to networking give the customers an opportunity to choose networking per their architecture while increasing the competition in this space.
The pending acquisition of Juniper Networks aligns with Hewlett Packard Enterprise's goal to expand its presence in the enterprise networking space. Juniper Networks’ advanced network infrastructure technologies, combined with HPE’s existing capabilities, are expected to create a powerful synergy. This will allow HPE to provide more robust and secure networking options, enhancing its competitiveness in the market.
HPE’s Mixed Q3 Guidance
Hewlett Packard forecasts revenues between $7.4 billion and $7.8 billion in the third quarter of fiscal 2024. The Zacks Consensus Estimate for revenues is pegged at $7.64 billion, indicating growth of 9.1% year over year.
The company estimates non-GAAP net earnings per share in the range of 43-48 cents, respectively. The Zacks Consensus Estimate for earnings is pegged at 46 cents, indicating a decline of 6.1% year over year.
What Investors Should Do With HPE Stock
Hewlett Packard Enterprise's efforts to strengthen its market position and expand its networking capabilities are likely to drive sustained performance improvements over the long run. Additionally, the Value score of A reflects that the stock is relatively cheap at present.
However, a softened IT spending environment amid macroeconomic headwinds and rising competition might undermine its near-term growth prospects.
Image: HPE Newsroom
HPE Aruba Expands Clientele: Should You Buy, Hold or Sell the Stock?
Hewlett Packard Enterprise (HPE - Free Report) shares have returned 12.8% year to date, underperforming the Zacks Computer - Integrated Systems industry’s growth of 16.2%. Macroeconomic uncertainties and geopolitical issues have kept the broader stock market highly volatile this year so far, and HPE stock has not been spared.
Despite these short-term challenges, Hewlett Packard Enterprise's long-term prospect seems bright as the company continues to gain customers for its products and solutions. For instance, HPE’s Aruba Networking recently upgraded advanced secure connectivity at Nobu Hotels’ select locations.
Hewlett Packard Enterprise equipped Nobu Hotels with its network infrastructure that is built on HPE Aruba and uses Zero Trust measures. It has installed artificial intelligence (AI)-based wired, wireless and SD-WAN solutions for Nobu Hotels to enhance guest experience and ensure constant connectivity and security.
The Aruba deployment will involve the setup of HPE Aruba Networking Central, HPE Aruba Networking ClearPass and HPE Aruba Networking User Experience Insight. These solutions will enhance the connectivity of mobile, IoT devices and AI-based applications. Accommodations, including door automation, security cameras, digital voice assistants, lighting, window blinds and in-room orders, will be installed. The solution will also be used to simplify the work of hospitality staff so they can focus better on customer service.
Hewlett Packard Enterprise Company Price and Consensus
Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote
Aruba’s Robust Capabilities Aid HPE
The rising adoption of Aruba Networking by organizations worldwide can be credited to the ongoing enhancements that HPE is continuously making to improve the solution's capabilities. So far this year, HPE added two new features to Aruba Networking.
Hewlett Packard Enterprise added GenAI LLM models in HPE Aruba Networking Central’s search feature to improve its accuracy. The company also launched HPE Aruba Networking Enterprise Private 5G, making HPE the world’s first company to provide Wi-Fi and private 5G solutions together.
Additionally, the pending acquisition of Juniper Networks (JNPR - Free Report) is poised to strengthen HPE's networking portfolio, enabling the company to offer comprehensive solutions that integrate networking, security and cloud services.
These enhancements in Aruba Networking’s capabilities will help Hewlett Packard Enterprise in acquiring new clients. So far this year, the Aruba Networking solution has gained several clients for HPE, including Berger Paints, Nice Brazil, the city of Carmel, Royal Jaarbeurs, Houston Airports, Bethesda Health Group, University of Maryland and Dedini S/A Indústrias de Base.
HPE Enhancing Aruba Networking Competitiveness
By continuously enhancing Aruba Networking’s capabilities, Hewlett Packard Enterprise has been able to gain a competitive advantage in edge networking over its long-term competitor, Cisco (CSCO - Free Report) , in the networking market.
Cisco is a networking company that is more focused on the security side of networking and AI. HPE has now combined WiFi, compute, storage, SaaS and its financial services to deliver the most comprehensive edge to cloud architecture.
Hewlett Packard Enterprise’s other formidable competitor in the networking space is Dell Technologies (DELL - Free Report) . Although both companies target enterprise customers, the modus operandi of installing the networking architecture is different for both players.
While Dell’s architecture is based on open networking that focuses on separating the hardware from the operating system, HPE is based on zero trust security, wireless edge-to-cloud and unified infrastructure. The two different types of approaches to networking give the customers an opportunity to choose networking per their architecture while increasing the competition in this space.
The pending acquisition of Juniper Networks aligns with Hewlett Packard Enterprise's goal to expand its presence in the enterprise networking space. Juniper Networks’ advanced network infrastructure technologies, combined with HPE’s existing capabilities, are expected to create a powerful synergy. This will allow HPE to provide more robust and secure networking options, enhancing its competitiveness in the market.
HPE’s Mixed Q3 Guidance
Hewlett Packard forecasts revenues between $7.4 billion and $7.8 billion in the third quarter of fiscal 2024. The Zacks Consensus Estimate for revenues is pegged at $7.64 billion, indicating growth of 9.1% year over year.
The company estimates non-GAAP net earnings per share in the range of 43-48 cents, respectively. The Zacks Consensus Estimate for earnings is pegged at 46 cents, indicating a decline of 6.1% year over year.
What Investors Should Do With HPE Stock
Hewlett Packard Enterprise's efforts to strengthen its market position and expand its networking capabilities are likely to drive sustained performance improvements over the long run. Additionally, the Value score of A reflects that the stock is relatively cheap at present.
However, a softened IT spending environment amid macroeconomic headwinds and rising competition might undermine its near-term growth prospects.
HPE stock currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.