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Hewlett Packard Enterprise (HPE) is a Top-Ranked Value Stock: Should You Buy?

·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Hewlett Packard Enterprise (HPE)

Headquartered in Palo Alto, CA, Hewlett Packard Enterprise Company was formed as a result of the split of Hewlett-Packard Company into two separate entities – one focusing on the enterprise-facing hardware and service business and the other focusing on the consumer-facing computer and printer segments.

HPE boasts a Value Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Hewlett Packard Enterprise are trading at a forward earnings multiple of 7X, as well as a PEG Ratio of 1.9, a Price/Cash Flow ratio of 3.1X, and a Price/Sales ratio of 0.7X.

A company's earnings performance is important for value investors as well. For fiscal 2022, one analyst revised their earnings estimate higher in the last 60 days for HPE, while the Zacks Consensus Estimate has increased $0.00 to $2.02 per share. HPE also holds an average earnings surprise of 7.8%.

Investors should take the time to consider HPE for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.


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