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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 $14.56, marking a +0.34% move from the previous day. This change outpaced the S&P 500's 0.81% loss on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the information technology products and services provider had lost 6.93% in the past month. In that same time, the Computer and Technology sector lost 7.05%, while the S&P 500 lost 6.82%.

Hewlett Packard Enterprise will be looking to display strength as it nears its next earnings release, which is expected to be June 1, 2022. On that day, Hewlett Packard Enterprise is projected to report earnings of $0.45 per share, which would represent a year-over-year decline of 2.17%. Our most recent consensus estimate is calling for quarterly revenue of $6.83 billion, up 1.87% from the year-ago period.

HPE's full-year Zacks Consensus Estimates are calling for earnings of $2.07 per share and revenue of $28.68 billion. These results would represent year-over-year changes of +5.61% and +3.22%, respectively.

Investors should also note any recent changes to analyst estimates for Hewlett Packard Enterprise. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Hewlett Packard Enterprise is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Hewlett Packard Enterprise is holding a Forward P/E ratio of 7. This valuation marks a discount compared to its industry's average Forward P/E of 12.96.

It is also worth noting that HPE currently has a PEG ratio of 1.76. 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 1.56 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 57, putting it in the top 23% 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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