From Nasdaq: 2025-02-12 09:07:00

Hewlett Packard Enterprise’s stock (HPE) is currently undervalued, trading at a lower forward P/E ratio than the industry average. HPE stock has surged 35.7% over the past year, outperforming the Computer and Technology sector and the S&P500 index. The company’s growth is driven by strong performance in GreenLake and AI systems.

HPE’s GreenLake customer base grew by 34.5% year over year, reaching 39,000 in Q4 of fiscal 2024. The annualized revenue run rate exceeded $1.9 billion at the end of the quarter. HPE has also received $6.7 billion in cumulative orders for AI products and services since Q1 of fiscal 2023, with a backlog of $3.5 billion.

Analysts predict HPE’s fiscal 2025 revenues to reach $32.4 billion, with a 7.5% year-over-year growth. Earnings are estimated to be $2.11 per share, indicating a 6% growth. HPE has beaten earnings estimates in the past four quarters. With its strong growth prospects, HPE stock is a Zacks Rank #2 (Buy) investment opportunity.

A new top semiconductor stock recommended by Zacks Investment Research is poised for significant growth in the AI, Machine Learning, and IoT markets. With the semiconductor industry projected to grow from $452 billion in 2021 to $803 billion by 2028, this stock has substantial potential for investors.



Read more at Nasdaq: HPE Trades at a Discounted Valuation: Should You Buy the Stock?