HPE Trading at Low P/E Multiple: Time to Buy, Hold or Sell the Stock?

Zacks12-10

Hewlett Packard Enterprise HPE has enjoyed a stellar 41.1% surge year to date (YTD), outperforming the Zacks Computer - Integrated Systems industry’s return of 16.6%. The stock has also outperformed ...

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The stock has also outperformed ...</p>\n\n<a href=\"https://finance.yahoo.com/news/hpe-trading-low-p-e-165600025.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>HPE Trading at Low P/E Multiple: Time to Buy, Hold or Sell the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHPE Trading at Low P/E Multiple: Time to Buy, Hold or Sell the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-10 00:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/hpe-trading-low-p-e-165600025.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Hewlett Packard Enterprise HPE has enjoyed a stellar 41.1% surge year to date (YTD), outperforming the Zacks Computer - Integrated Systems industry’s return of 16.6%. The stock has also outperformed ...</p>\n\n<a href=\"https://finance.yahoo.com/news/hpe-trading-low-p-e-165600025.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2458330169.SGD","symbol_name":"FRANKLIN SHARIAH TECHNOLOGY \"A\" (SGD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/hpe-trading-low-p-e-165600025.html","article_id":"2490707867","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/w0Mp4Lcd7fYMG0PS9scFtw--~B/aD0zNDk7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/d3db6a602d270a71e27e10165901ee1a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490707867","pubTimestamp":1733763360,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Hewlett Packard Enterprise HPE has enjoyed a stellar 41.1% surge year to date , outperforming the Zacks Computer - Integrated Systems industry’s return of 16.6%. The stock has also outperformed its peers in the space, including Micron MU, Seagate Technology STX and Advanced Micro Devices AMD.Despite this impressive performance, HPE still trades at a price-to-earnings (P/E) multiple lower than the industry average, raising the question: Is this the right time to buy, sell or hold the stock?While the company’s discounted valuation may seem like an attractive entry point, a closer look at HPE’s financial results, segmental performance and guidance reveals significant headwinds. For now, selling the stock appears to be the most prudent choice.Hewlett Packard Enterprise is experiencing persistent demand for its AI system offerings. In the fourth quarter of fiscal 2024, Hewlett Packard Enterprise reported that it had $6.7 billion in cumulative orders for AI products and services since the fi","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2458330169.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A\" (SGD) ACC","LU1880398471.USD":"AMUNDI FUNDS GLOBAL EQUITY \"A2\" (USD) ACC","IE00B894F039.SGD":"Legg Mason ClearBridge - US Aggressive Growth A Acc SGD-H","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","LU0792757196.USD":"TEMPLETON SHARIAH GLOBAL EQUITY FUND \"A\" (USD) ACC","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","BK4515":"5G概念","MU":"美光科技","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","LU2360106780.USD":"BGF WORLD TECHNOLOGY \"A4\" (USD) INC","LU0082616367.USD":"摩根大通美国科技A（dist）","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0823421333.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) ACC","LU0056508442.USD":"贝莱德世界科技基金A2","BK4585":"ETF&股票定投概念","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","LU0823421416.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) INC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","STX":"希捷科技","BK4566":"资本集团","LU0081259029.USD":"UBS (LUX) EQUITY FUND - TECH OPPORTUNITY \"P\" (USD) ACC","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","AMD":"美国超微公司","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","BK4579":"人工智能","IE00B19Z9Z06.USD":"Legg Mason ClearBridge - US Aggressive Growth A Acc USD","BK4141":"半导体产品","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","BK4573":"虚拟现实","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","HPE":"慧与科技","BK4529":"IDC概念","LU0823434583.USD":"BNP PARIBAS US GROWTH \"C\" (USD) ACC","LU2211815571.USD":"ALLIANZ POSITIVE CHANGE \"AT\" (USD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","BK4512":"苹果概念","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU2286300806.USD":"Allianz Cyber Security AT Acc USD","LU1366333091.USD":"FIDELITY GLOBAL FOCUS \"A\" (USD) ACC","LU2054465674.USD":"UBS (LUX) KEY SELEC SICAV DIGITAL TRANSFORMATION T \"P\" (USD) ACC","LU1303367103.USD":"摩根大通多经理另类基金 A (acc)","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU2098885051.SGD":"JPMorgan Funds - Multi-Manager Alternatives A (acc) SGD"},"translate_title":"HPE以低市盈率交易：是时候买入、持有还是卖出股票了？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"STX":1,"AMD":1,"HPE":1,"MU":1},"content_text":"Hewlett Packard Enterprise HPE has enjoyed a stellar 41.1% surge year to date (YTD), outperforming the Zacks Computer - Integrated Systems industry’s return of 16.6%. The stock has also outperformed its peers in the space, including Micron MU, Seagate Technology STX and Advanced Micro Devices AMD.\nYTD Price Return Performance\nImage Source: Zacks Investment Research\nDespite this impressive performance, HPE still trades at a price-to-earnings (P/E) multiple lower than the industry average, raising the question: Is this the right time to buy, sell or hold the stock?\nWhile the company’s discounted valuation may seem like an attractive entry point, a closer look at HPE’s financial results, segmental performance and guidance reveals significant headwinds. For now, selling the stock appears to be the most prudent choice.\nImage Source: Zacks Investment Research\nHPE’s Impressive Rally: A Reflection of Past Strength\nHewlett Packard Enterprise’s YTD rally has been supported by strength in key segments, particularly GreenLake and AI systems. There is massive traction in the adoption of HPE GreenLake as organizations are benefiting from the flexibility and scalability of this IT transformation solution.\nGreenLake’s customer base grew nearly 34.5% year over year to 39,000 in the fourth quarter of fiscal 2024. This growth in customer base has contributed to an annualized revenue run rate that has increased 48% year over year, reaching more than $1.9 billion at the end of the fiscal fourth quarter.\nHewlett Packard Enterprise is experiencing persistent demand for its AI system offerings. In the fourth quarter of fiscal 2024, Hewlett Packard Enterprise reported that it had $6.7 billion in cumulative orders for AI products and services since the first quarter of fiscal 2023. HPE’s new AI orders in the fiscal fourth quarter of 2024 have brought its backlogs to a value of $3.5 billion.\nHowever, much of this growth appears to be baked into the stock price, given the 41% YTD gain, which has already outpaced the broader technology sector. With limited near-term catalysts and intensifying competition, HPE’s valuation advantage may be less of a bargain than it seems.\nNear-Term Headwinds for HPE\nWhile Hewlett Packard Enterprise is capitalizing on the rise of AI and making strides in this space, the company is also facing certain challenges. HPE’s intelligent edge division is facing pressure from the accumulation of inventory levels among HPE’s customer base. Revenues in the Intelligent Edge division plunged 20% year over year in the fourth quarter of fiscal 2024. In this segment, HPE’s switching and campus solutions are experiencing weak demand.\nMoreover, due to the low mix of high-margin Intelligent Edge revenues, HPE’s gross margin is also pressured. In the fiscal fourth quarter, HPE’s non-GAAP gross margin contracted 390 bps on a year-over-year basis and 90 bps on a quarter-over-quarter basis to 30.9%.\nHPE’s financial services division is also experiencing a lower single-digit growth. The Financial service segment’s revenues of $893 million increased 2% year over year in the fiscal fourth quarter of 2024. The weakness in these two segments has partially been due to softening IT spending.\nHigher interest rates and inflationary pressures are hurting consumer spending. On the other hand, enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues.\nThe Zacks Consensus Estimate for fiscal 2025 and 2026 top and bottom lines does not depict a strong financial recovery in the near term for the company.\nImage Source: Zacks Investment Research\nWhat Should Investors Do?\nHewlett Packard Enterprise has had a strong run in 2024, driven by impressive gains in AI systems and hybrid cloud solutions. However, it is going through a myriad of transitions and challenges, making the stock’s current market position a little volatile.\nGiven the challenges, selling HPE stock now allows investors to lock in gains from this year’s rally while avoiding potential downside risks. Hewlett Packard Enterprise carries a Zacks Rank #4 (Sell) at present.\nYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nAdvanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report\nSeagate Technology Holdings PLC (STX) : Free Stock Analysis Report\nMicron Technology, Inc. (MU) : Free Stock Analysis Report\nHewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490707867"}