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Hewlett Packard Enterprise (HPE) Outpaces Stock Market Gains: What You Should Know

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Hewlett Packard Enterprise (HPE) closed at $13.88 in the latest trading session, marking a +0.8% move from the prior day. This move outpaced the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.04%.

Heading into today, shares of the information technology products and services provider had lost 2.06% over the past month, outpacing the Computer and Technology sector's loss of 13.84% and lagging the S&P 500's gain of 5.55% in that time.

Wall Street will be looking for positivity from Hewlett Packard Enterprise as it approaches its next earnings report date. The company is expected to report EPS of $0.48, up 2.13% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.97 billion, up 1.02% from the year-ago period.

HPE's full-year Zacks Consensus Estimates are calling for earnings of $2.02 per share and revenue of $28.21 billion. These results would represent year-over-year changes of +3.06% and +1.52%, respectively.

Investors should also note any recent changes to analyst estimates for Hewlett Packard Enterprise. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 #4 (Sell) right now.

Digging into valuation, Hewlett Packard Enterprise currently has a Forward P/E ratio of 6.82. This valuation marks a discount compared to its industry's average Forward P/E of 31.63.

We can also see that HPE currently has a PEG ratio of 1.82. 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. HPE's industry had an average PEG ratio of 1.82 as of yesterday's close.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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