Hewlett Packard Enterprise (HPE): Exploring Potential Value After Recent Share Gains

Hewlett Packard Enterprise (HPE) stock has seen steady activity recently, attracting a fresh look from investors curious about its performance over the past month. There is plenty to unpack in HPE’s latest numbers and trends.

See our latest analysis for Hewlett Packard Enterprise.

Zooming out from recent sessions, Hewlett Packard Enterprise shares have notched a lively 23.3% gain over the past 90 days, and delivered an impressive 25.8% total shareholder return for the year. This momentum signals that investors have become increasingly optimistic about HPE's prospects as growth and cloud trends ripple through the tech sector.

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With HPE outpacing peers in recent returns, the pressing question is whether the stock still offers untapped value or if the market has already baked in expectations for its future growth. Could there be a buying window, or is it fully priced?

Most Popular Narrative: 7.6% Undervalued

HPE’s narrative value sits above its recent close, marking a notable upside compared to where the market finished last session. The calculation behind this fair value draws attention, especially as it signals more room for growth than what some investors may expect when looking only at the recent run-up.

The ongoing acceleration of digital transformation is prompting enterprises to modernize IT architectures with hybrid and multi-cloud deployments. HPE's growth in hybrid cloud (such as GreenLake) and recurring software/services revenue positions it to capture more predictable, higher-margin revenues, improving overall earnings quality and visibility.

Read the complete narrative.

Wondering what ambitious projections power this view? The narrative relies on step-change upgrades in revenue, profit margins, and future earnings per share. Which forward-looking figures drive the bullish calculation? Uncover the story behind HPE’s fair value and see how these estimates could influence market sentiment.

Result: Fair Value of $26.51 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution risks with the Juniper integration or a continued slowdown in legacy hardware could challenge HPE’s promising growth outlook in the future.

Find out about the key risks to this Hewlett Packard Enterprise narrative.

Build Your Own Hewlett Packard Enterprise Narrative

Curious to see if your view lines up with the consensus or diverges? Dive into the data, form your own opinion, and put together your own take in just a few minutes: Do it your way.

A great starting point for your Hewlett Packard Enterprise research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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