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The Best Options Trade for Hewlett-Packard Enterprise (HPE)
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On Tuesday, September 6th, Hewlett-Packard Enterprise will release its Q3 2016 earnings results. The company is currently a Zacks Rank #3 (Hold), and shares are near a 52-week high.
Dave will investigate HP Enterprise’s (HPE - Free Report) past earnings, look at what is currently going on with the company, and will give us his thoughts on their upcoming earnings announcement as well.
Furthermore, Dave will uncover some potential options trades for investors looking to make a play on HP Enterprise ahead of earnings.
Hewlett-Packard Enterprise in Focus
Hewlett-Packard Enterprise (HPE - Free Report) was spun off from Hewlett-Packard Company (HPQ - Free Report) in November 2015. The Enterprise Group is the company's largest revenue contributor, accounting for more than half of total revenues. This segment offers servers, management software, converged infrastructure solutions and technology services; hybrid cloud solutions, business critical systems and storage products.
HP Enterprise met earnings expectations last quarter at $0.42 per share. The Zack Consensus Estimate for this quarter is $0.44 per share. Hewlett-Packard Enterprise has an average EPS surprise of 2.57% for the last two quarters.
Due to an upbeat earnings expectations, shares of Hewlett-Packard Enterprise are currently trading near a 52-week high. The company is expected to report sales at $12.59 billion.
HP Enterprise is potentially looking at selling their software division to Thoma Bravo. The deal as of now will be valued between $8 to $10 billion, according to Reuters, and shares were up Thursday as a result. This looks to weigh on the report as well, though investors should also consider the industry rank heading into the release.
HP Enterprise’s industry, Computer-Integrated Systems, is currently ranked in the top 39% according to the Zacks Industry Rank. While the broader computer industry continues to face headwinds thanks to the growth of mobile and the decline of desktop use, HP Enterprise seems to be a more formidable spot since the company is relying on the growth of management software, infrastructure solutions, and technology services including cloud solutions to power its growth.
Even so, HP Enterprise is in a tough sector, going against other major competitors including Cisco Systems (CSCO - Free Report) and Juniper Networks (JNPR - Free Report) . Overall, it seems like HP Enterprise is in a decent spot, and could be poised for continued growth and earnings success. However, they are in a sector that is constantly changing so HPE will need to remain nimble in the quarters ahead.
But how should investors play this company ahead of its report? For insights on the best options trades, make sure to watch Dave Bartosiak at 1pm on Tuesday on our YouTube Channel, for more information.
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The Best Options Trade for Hewlett-Packard Enterprise (HPE)
On Tuesday, September 6th, Hewlett-Packard Enterprise will release its Q3 2016 earnings results. The company is currently a Zacks Rank #3 (Hold), and shares are near a 52-week high.
Dave will investigate HP Enterprise’s (HPE - Free Report) past earnings, look at what is currently going on with the company, and will give us his thoughts on their upcoming earnings announcement as well.
Furthermore, Dave will uncover some potential options trades for investors looking to make a play on HP Enterprise ahead of earnings.
Hewlett-Packard Enterprise in Focus
Hewlett-Packard Enterprise (HPE - Free Report) was spun off from Hewlett-Packard Company (HPQ - Free Report) in November 2015. The Enterprise Group is the company's largest revenue contributor, accounting for more than half of total revenues. This segment offers servers, management software, converged infrastructure solutions and technology services; hybrid cloud solutions, business critical systems and storage products.
HP Enterprise met earnings expectations last quarter at $0.42 per share. The Zack Consensus Estimate for this quarter is $0.44 per share. Hewlett-Packard Enterprise has an average EPS surprise of 2.57% for the last two quarters.
HEWLETT PKD ENT Price, Consensus and EPS Surprise
HEWLETT PKD ENT Price, Consensus and EPS Surprise | HEWLETT PKD ENT Quote
Due to an upbeat earnings expectations, shares of Hewlett-Packard Enterprise are currently trading near a 52-week high. The company is expected to report sales at $12.59 billion.
HP Enterprise is potentially looking at selling their software division to Thoma Bravo. The deal as of now will be valued between $8 to $10 billion, according to Reuters, and shares were up Thursday as a result. This looks to weigh on the report as well, though investors should also consider the industry rank heading into the release.
HP Enterprise’s industry, Computer-Integrated Systems, is currently ranked in the top 39% according to the Zacks Industry Rank. While the broader computer industry continues to face headwinds thanks to the growth of mobile and the decline of desktop use, HP Enterprise seems to be a more formidable spot since the company is relying on the growth of management software, infrastructure solutions, and technology services including cloud solutions to power its growth.
Even so, HP Enterprise is in a tough sector, going against other major competitors including Cisco Systems (CSCO - Free Report) and Juniper Networks (JNPR - Free Report) . Overall, it seems like HP Enterprise is in a decent spot, and could be poised for continued growth and earnings success. However, they are in a sector that is constantly changing so HPE will need to remain nimble in the quarters ahead.
But how should investors play this company ahead of its report? For insights on the best options trades, make sure to watch Dave Bartosiak at 1pm on Tuesday on our YouTube Channel, for more information.