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Hewlett Packard Enterprise (HPE) closed the most recent trading day at $16.67, moving -0.42% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq added 0.03%.
Prior to today's trading, shares of the information technology products and services provider had gained 7.65% over the past month. This has outpaced the Computer and Technology sector's loss of 5.94% and the S&P 500's loss of 1.81% in that time.
Investors will be hoping for strength from Hewlett Packard Enterprise as it approaches its next earnings release. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.01 billion, up 2.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.03 per share and revenue of $28.67 billion, which would represent changes of +3.57% and +3.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Hewlett Packard Enterprise. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Hewlett Packard Enterprise currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Hewlett Packard Enterprise currently has a Forward P/E ratio of 8.27. This valuation marks a discount compared to its industry's average Forward P/E of 15.88.
Investors should also note that HPE has a PEG ratio of 1.43 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.65 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 56, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
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