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Are Investors Undervaluing Hewlett Packard (HPE) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Hewlett Packard (HPE - Free Report) is a stock many investors are watching right now. HPE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.21. This compares to its industry's average Forward P/E of 18.68. Over the past year, HPE's Forward P/E has been as high as 10.80 and as low as 7.16, with a median of 8.61.
Investors will also notice that HPE has a PEG ratio of 2.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HPE's industry has an average PEG of 4.45 right now. Over the past 52 weeks, HPE's PEG has been as high as 2.78 and as low as 1.85, with a median of 2.25.
Finally, our model also underscores that HPE has a P/CF ratio of 5.72. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.31. Over the past year, HPE's P/CF has been as high as 6.55 and as low as 4.24, with a median of 4.96.
These are just a handful of the figures considered in Hewlett Packard's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HPE is an impressive value stock right now.
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Are Investors Undervaluing Hewlett Packard (HPE) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Hewlett Packard (HPE - Free Report) is a stock many investors are watching right now. HPE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.21. This compares to its industry's average Forward P/E of 18.68. Over the past year, HPE's Forward P/E has been as high as 10.80 and as low as 7.16, with a median of 8.61.
Investors will also notice that HPE has a PEG ratio of 2.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HPE's industry has an average PEG of 4.45 right now. Over the past 52 weeks, HPE's PEG has been as high as 2.78 and as low as 1.85, with a median of 2.25.
Finally, our model also underscores that HPE has a P/CF ratio of 5.72. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.31. Over the past year, HPE's P/CF has been as high as 6.55 and as low as 4.24, with a median of 4.96.
These are just a handful of the figures considered in Hewlett Packard's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HPE is an impressive value stock right now.