Hewlett Packard Company ( HPE Quick Quote HPE - Free Report) recently announced its plans to invest $4 billion in its Intelligent Edge technology related to edge computing, which deals with providing storage and computing capabilities close to where data is generated. The idea of computing data right at the point of generation or at a closer point rather than a data center lowers the latency period and leads to real-time processing. Additionally, the cost related to transferring data to a data center is also not required. Notably, the growth of edge computing is also assisting the rise in use of IoT (Internet of Things) devices, pertaining to the computation of data closer to the source. This eases the deployment process and enhances security. The increased use of edge computing, which leads to faster processing of data, is expected to gain widespread adoption with an exponential in increase in data generation. Per a recent report by Research And Markets, the global edge computing market is expected to reach $20,495.24 million by 2026 from $7,983.61 million in 2017 at a CAGR of 11%.
Hewlett Packard Enterprise can make the most of the growth opportunity if the cards are rightly placed.
HPE’s Position in Edge Computing
Hewlett Packard Enterprise with its Aruba unit has a prominent presence in the industry. The host of solutions provided include campus switching, security, location-based services, wireless LAN and analytics among others.
Most recently, Aruba introduced a solution for the modernization of branch networks for the evolution of IoT, cloud and mobility usage. Per the press release, “Aruba’s SD-Branch solution integrates new Aruba Branch Gateways with Aruba’s enhanced Aruba Central cloud management platform to provide a single point for SD-WAN, wired and wireless networking and policy enforcement, and to deliver secure, simplified branch connectivity at scale.”
We believe that Hewlett Packard Enterprise’s increasing efforts toward strengthening its position in the Intelligent Edge domain will aid the company in grabbing a share in the global edge computing market, which will eventually benefit its top line.
Zacks Rank and Stocks to Consider Hewlett Packard Company currently has a Zacks Rank #3 (Hold). Some better-ranked technology stocks include NVIDIA Corp. ( NVDA Quick Quote NVDA - Free Report) , Western Digital Corp. ( WDC Quick Quote WDC - Free Report) and Micron Technology, Inc. ( MU Quick Quote MU - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Long-term earnings growth rate for NVIDIA, Western Digital and Micron is currently projected to be 10.25%, 19% and 8.9%, respectively. Today's Stocks from Zacks' Hottest Strategies It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%. And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>