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Texas-based Hewlett Packard Enterprise Company (HPE) is a global edge-to-cloud company that provides solutions allowing customers to capture, analyze, and act upon data seamlessly worldwide. With a market cap of $22.3 billion, Hewlett Packard Enterprise operates through Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Hewlett Packard Enterprise fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the technology sector.
HPE touched its all-time high of $22.82 on Jun. 18 and is currently trading 32.4% below that peak. HPE has declined 20.2% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) marginal decline during the same time frame.
Over the longer term, HPE has substantially underperformed NASX. HPE experienced marginal gains over the past year and is up 1.5% in 2024 compared to NASX’s 28.3% gains over the past 52 weeks and 17.2% returns on a YTD basis.
To confirm the recent bearish trend, HPE stock has traded below its 200-day moving average since early September and below its 50-day moving average since late July.
Shares of Hewlett Packard Enterprise dipped 6% in the trading session after the release of its Q3 earnings on Sep. 4. Despite reporting a 10.1% annual revenue growth to $7.7 billion and a 10.3% rise in net earnings to $512 million, its gross margin shrunk by 4.2% to 31.6%, falling short of Wall Street expectations. However, its EPS of $0.45 surpassed the consensus estimates by 15.4%.
HPE stock fell further 8.5% on Sep 10, following the announcement of the pricing for its previously disclosed public offering of $1.35 billion in convertible preferred stock, intended primarily to finance the acquisition of Juniper Networks.
Hewlett Packard Enterprise’s competitor, Cisco Systems, Inc. (CSCO), has underperformed HPE over the past year. CSCO declined 8.9% over the past year and gained 1% on a YTD basis.
Among the 13 analysts covering the HPE stock, the consensus rating is a “Hold.” The mean price target of $20.64 represents a potential upside of 19.8% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
