Hewlett Packard Enterprise (HPE) closed at $16.62 in the latest trading session, marking a -1.89% move from the prior day. This change lagged the S&P 500’s daily loss of 1.84%. At the same time, the Dow lost 1.38%, and the tech-heavy Nasdaq lost 0.38%.
– Zacks Prior to today’s trading, shares of the information technology products and services provider had gained 6.61% over the past month. This has outpaced the Computer and Technology sector’s loss of 3.8% and the S&P 500’s loss of 1.96% in that time.
Wall Street will be looking for positivity from Hewlett Packard Enterprise as it approaches its next earnings report date. This is expected to be March 1, 2022. On that day, Hewlett Packard Enterprise is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 11.54%. Our most recent consensus estimate is calling for quarterly revenue of $7.02 billion, up 2.69% from the year-ago period.
HPE’s full-year Zacks Consensus Estimates are calling for earnings of $2.03 per share and revenue of $28.67 billion. These results would represent year-over-year changes of +3.57% and +3.2%, respectively.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Hewlett Packard Enterprise is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Hewlett Packard Enterprise currently has a Forward P/E ratio of 8.37. This represents a discount compared to its industry’s average Forward P/E of 16.84.
Also, we should mention that HPE has a PEG ratio of 1.45. 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. The Computer – Integrated Systems was holding an average PEG ratio of 1.44 at yesterday’s closing price.
The Computer – Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% 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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