Hewlett Packard Enterprise (HPE) Gains As Market Dips: What You Should Know
Hewlett Packard Enterprise (HPE) closed the most recent trading day at $15.84, moving +0.96% from the previous trading session. This move outpaced the S&P 500's daily loss of 3.2%. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 0.69%.
Prior to today's trading, shares of the information technology products and services provider had lost 2.55% over the past month. This has was narrower than the Computer and Technology sector's loss of 11.63% and the S&P 500's loss of 7.87% in that time.
Investors will be hoping for strength from Hewlett Packard Enterprise as it approaches its next earnings release. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $6.83 billion, up 1.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.10 per share and revenue of $28.68 billion, which would represent changes of +7.14% and +3.22%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Hewlett Packard Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Hewlett Packard Enterprise currently has a Zacks Rank of #3 (Hold).
Investors should also note Hewlett Packard Enterprise's current valuation metrics, including its Forward P/E ratio of 7.46. For comparison, its industry has an average Forward P/E of 14.01, which means Hewlett Packard Enterprise is trading at a discount to the group.
It is also worth noting that HPE currently has a PEG ratio of 1.25. 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.54 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 101, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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