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Is Hewlett Packard Enterprise (HPE) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Hewlett Packard Enterprise (HPE - Free Report) . HPE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.21, while its industry has an average P/E of 10.22. Over the past year, HPE's Forward P/E has been as high as 10.31 and as low as 7.23, with a median of 8.80.
We also note that HPE holds a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HPE's industry currently sports an average PEG of 1.56. HPE's PEG has been as high as 1.93 and as low as 0.83, with a median of 1.32, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HPE has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.8.
Finally, our model also underscores that HPE has a P/CF ratio of 9.22. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.50. Over the past 52 weeks, HPE's P/CF has been as high as 9.45 and as low as 3.92, with a median of 6.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hewlett Packard Enterprise is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPE feels like a great value stock at the moment.
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Is Hewlett Packard Enterprise (HPE) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Hewlett Packard Enterprise (HPE - Free Report) . HPE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.21, while its industry has an average P/E of 10.22. Over the past year, HPE's Forward P/E has been as high as 10.31 and as low as 7.23, with a median of 8.80.
We also note that HPE holds a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HPE's industry currently sports an average PEG of 1.56. HPE's PEG has been as high as 1.93 and as low as 0.83, with a median of 1.32, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HPE has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.8.
Finally, our model also underscores that HPE has a P/CF ratio of 9.22. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.50. Over the past 52 weeks, HPE's P/CF has been as high as 9.45 and as low as 3.92, with a median of 6.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Hewlett Packard Enterprise is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPE feels like a great value stock at the moment.