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Here's Why Hewlett Packard Enterprise (HPE) is a Strong Value Stock

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

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.

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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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 7.4X for the current fiscal year compared to the Computer - Integrated Systems industry's P/E of 15.9X. Additionally, HPE has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 4.6X. Value investors should also note HPE's Price/Sales ratio of 0.7X.

Many value investors pay close attention to a company's earnings as well. For HPE, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.08 per share for 2023. Per share HPE boasts an average earnings surprise of 4.7%.

HPE should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research