Hewlett Packard Enterprise (HPE) has gained 14.3% in the year-to-date period but underperformed the industry. Valuation-wise, HPE trades at a discount with a forward P/S ratio of 0.81 compared to the industry’s 3.59. The company is benefiting from growth in its Hybrid Cloud and Networking business segments.

In the third quarter of fiscal 2025, HPE’s Hybrid Cloud segment grew 14.2% year over year, driven by Alletra MP adoption and GreenLake cloud platform expansion. The recent acquisition of Juniper Networks has boosted the new Networking segment’s revenues by 54.3%. HPE is expanding its AI expertise through partnerships with NVIDIA, Arista Networks, and Microsoft.

Despite facing challenges like softening IT spending and competition from larger companies, HPE’s top and bottom lines are strong. The Zacks Consensus Estimate for fiscal 2025 earnings is $1.90 per share. HPE carries a Zacks Rank #3 (Hold) and remains a solid investment opportunity in the networking and cloud space.

Quantum Computing is the next big technological revolution, already integrated by major players like Microsoft, Google, Amazon, and Tesla. Senior Stock Strategist Kevin Cook has identified 7 quantum computing stocks poised for success. Investors can position their portfolios for this opportunity now.

Read more at Nasdaq: Should You Buy, Sell or Hold HPE Stock After a 14.3% Rise YTD?