Is Hewlett Packard Enterprise Stock Outperforming the Dow?

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By Ronald Tech

Spring, 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 $28.4 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, influence, and dominance in the technology sector. It serves customers in over 170 countries across the globe.

Hewlett recently touched its all-time high of $24.24 on Dec. 6 and is currently trading 11.1% below that peak. HPE has surged 18.4% over the past three months, significantly outpacing the Dow Jones Industrials Average’s ($DOWI) 4.4% gains during the same time frame.

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Over the longer term, Hewlett’s performance looks much more impressive. HPE has gained 26.9% on a YTD basis and 28.8% over the past 52 weeks, outperforming DOWI’s 15.3% gains in 2024 and 16.5% returns over the past year.

To confirm the recent surge in prices, HPE has traded consistently above its 200-day and 50-day moving averages since mid-September.

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Hewlett Packard Enterprise’s stock prices soared 10.6% in the trading session after the release of its impressive Q4 results on Dec. 5. The company delivered robust financials with record quarterly revenues, its net revenues surged 15.1% year-over-year to $8.5 billion, which surpassed Wall Street’s expectations by a notable 2.8%.

Furthermore, driven by HPE’s disciplined execution and improving customer demand across its extensive portfolio, the company reported robust earnings and cash flow generation. Its adjusted net earnings increased by a staggering 16.9% year-over-year to $795 million and its adjusted EPS of $0.53 surpassed analysts’ estimates by a notable 10.4%, boosting investor confidence.

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HPE has also outpaced its peer Cisco Systems, Inc.’s (CSCO) 15.8% gains on a YTD basis and 17.4% returns over the past year.

Among the 16 analysts covering the HPE stock, the consensus rating is a “Moderate Buy.” The mean price target of $23.80 represents a 10.5% premium to 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. More news from Barchart