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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Zacks Equity Research
·2 min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

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

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight 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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Computer - Integrated Systems industry's P/E of 15.9X, shares of Hewlett Packard Enterprise are trading at a forward P/E of 7.2X. HPE also has a PEG Ratio of 1.5, a Price/Cash Flow ratio of 4.5X, and a Price/Sales ratio of 0.7X.

Many value investors pay close attention to a company's earnings as well. For HPE, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $2.07 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