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Hewlett Packard Enterprise (HPE) Outpaces Stock Market Gains: What You Should Know

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Hewlett Packard Enterprise (HPE - Free Report) closed at $17.15 in the latest trading session, marking a +0.65% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the information technology products and services provider had gained 16.95% over the past month. This has outpaced the Computer and Technology sector's loss of 4.59% and the S&P 500's gain of 0.12% in that time.

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 $0.46 per share, which would represent a year-over-year decline of 11.54%. Meanwhile, our latest consensus estimate is calling for revenue of $7.01 billion, up 2.62% from the prior-year quarter.

HPE's full-year Zacks Consensus Estimates are calling for earnings of $2.03 per share and revenue of $28.67 billion. These results would represent year-over-year changes of +3.57% and +3.19%, respectively.

Investors might also notice recent changes to analyst estimates for Hewlett Packard Enterprise. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant within the past month. Hewlett Packard Enterprise is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Hewlett Packard Enterprise is currently trading at a Forward P/E ratio of 8.41. Its industry sports an average Forward P/E of 16.67, so we one might conclude that Hewlett Packard Enterprise is trading at a discount comparatively.

Meanwhile, HPE's PEG ratio is currently 1.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% 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.

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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