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

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In the latest trading session, Hewlett Packard Enterprise (HPE - Free Report) closed at $14.74, marking a +1.17% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.16%.

Coming into today, shares of the information technology products and services provider had lost 4.65% in the past month. In that same time, the Computer and Technology sector lost 4.01%, while the S&P 500 lost 4.99%.

HPE will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2019. On that day, HPE is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 2.94%. Meanwhile, our latest consensus estimate is calling for revenue of $7.68 billion, up 0.03% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.57 per share and revenue of $31.12 billion. These totals would mark changes of +0.64% and +0.88%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for HPE. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.77% lower within the past month. HPE is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, HPE is currently trading at a Forward P/E ratio of 9.28. For comparison, its industry has an average Forward P/E of 9.65, which means HPE is trading at a discount to the group.

Investors should also note that HPE has a PEG ratio of 1.35 right now. 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. HPE's industry had an average PEG ratio of 1.77 as of yesterday's close.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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