Hewlett Packard Enterprise (HPE) closed the most recent trading day at $13.21, moving +1.38% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 1.15%, and the tech-heavy Nasdaq gained 0.77%.
Coming into today, shares of the information technology products and services provider had lost 13.82% in the past month. In that same time, the Computer and Technology sector lost 7.6%, while the S&P 500 lost 9.35%.
HPE will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2019. In that report, analysts expect HPE to post earnings of $0.35 per share. This would mark year-over-year growth of 2.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.68 billion, up 0.03% from the year-ago period.
HPE's full-year Zacks Consensus Estimates are calling for earnings of $1.57 per share and revenue of $31.12 billion. These results would represent year-over-year changes of +0.64% and +0.88%, respectively.
Investors might also notice recent changes to analyst estimates for HPE. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% lower. HPE is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note HPE's current valuation metrics, including its Forward P/E ratio of 8.3. This valuation marks a discount compared to its industry's average Forward P/E of 8.67.
It is also worth noting that HPE currently has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. 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 group has a Zacks Industry Rank of 173, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.