Hewlett Packard Enterprise (HPE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Hewlett Packard Enterprise (HPE) closed at $15.38, marking a +0.72% move from the previous day. This change outpaced the S&P 500's 0.21% gain on the day. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.11%.
Heading into today, shares of the information technology products and services provider had lost 13.04% over the past month, outpacing the Computer and Technology sector's loss of 13.55% and lagging the S&P 500's loss of 8.08% 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 $0.45, down 2.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.83 billion, up 1.87% from the year-ago period.
HPE's full-year Zacks Consensus Estimates are calling for earnings of $2.10 per share and revenue of $28.68 billion. These results would represent year-over-year changes of +7.14% and +3.22%, respectively.
Investors should also note any recent changes to analyst estimates for Hewlett Packard Enterprise. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Hewlett Packard Enterprise currently has a Forward P/E ratio of 7.26. For comparison, its industry has an average Forward P/E of 12.91, which means Hewlett Packard Enterprise is trading at a discount to the group.
Also, we should mention that HPE has a PEG ratio of 1.21. 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 had an average PEG ratio of 1.53 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 58, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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