Key statistics

Is HPE a good stock to buy in 2026?

Hewlett Packard Enterprise Company (HPE) currently presents a complex investment profile. While 40.5% of analysts rate HPE stock as a “Buy,” indicating some positive sentiment, its P/E ratio stands at a negative -252.69x compared to the sector average of 54.5x, which could signal underlying profitability challenges. Furthermore, a discounted cash flow (DCF) valuation of $17.92 suggests the current HPE valuation is significantly overvalued by -39.4% relative to its intrinsic value.

2026 HPE price scenarios

Based on analyst consensus of $28.71 from 37 analysts. Not a prediction by Alert Invest.

About Hewlett Packard Enterprise Company (HPE)

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE BladeSystem and HPE Synergy; and solutions for secondary workloads and traditional tape, storage networking, and disk products, such as HPE Modular Storage Arrays and HPE XP. It also offers HPE Apollo and Cray products; and HPE Superdome Flex, HPE Nonstop, HPE Integrity, and HPE Edgeline products.

Under the leadership of CEO Antonio Fabio Neri, Hewlett Packard Enterprise Company is guided by a strategic vision focused on the edge-to-cloud platform-as-a-service model. With approximately 61,000 employees worldwide, HPE leverages its deep expertise in compute, storage, networking, and services to provide innovative technology solutions across various industries. The company’s distinctive strengths lie in its comprehensive portfolio, robust channel partnerships, and a commitment to R&D, positioning it to capitalize on evolving IT trends such as hybrid cloud, AI, and intelligent edge computing.

HPE competitive moat and business analysis

HPE’s competitive advantage in the Communication Equipment industry is built on its extensive portfolio of enterprise solutions and global reach. However, the company’s net margin of -0.44% indicates current profitability challenges, which is a key area for investors to consider when evaluating HPE stock. While return on equity (ROE) and return on invested capital (ROIC) data is currently unavailable, it’s crucial to understand that a negative net margin often signals that the company is not generating sufficient profit from its sales, potentially due to high operational costs or aggressive pricing strategies in a competitive market.

Hewlett Packard Enterprise operates through several key segments, delivering a wide range of products and services. While specific revenue breakdowns by segment for fiscal year 2025 are not detailed in the provided data, HPE is known for its offerings in compute, storage, networking, and advisory services. Geographically, the company maintains a broad presence, serving customers across the Americas, Europe, the Middle East, Africa, Asia Pacific, and Japan, which diversifies its revenue streams and mitigates regional economic risks.

Examining HPE’s competitive moat over time reveals its strategy to adapt to a rapidly changing technology landscape. The reported revenue growth of 14.1% year-over-year is a positive indicator, suggesting that the company is successfully expanding its market reach and generating increased sales. This growth momentum is critical for strengthening its position against rivals. Without a specific transcript quote available, we can infer that management’s focus remains on strategic initiatives that drive this revenue expansion, such as investments in high-growth areas like AI and hybrid cloud solutions, which are vital for enhancing the long-term value of HPE stock.

To truly understand HPE’s market standing, it is valuable to compare its performance against key industry peers. Investors often analyze companies like ASX, CIEN, and CRDO when considering the broader Communication Equipment sector. Detailed side-by-side analysis, including HPE valuation metrics and growth prospects, can be found by exploring comparisons such as HPE vs ASX, HPE vs CIEN, and HPE vs CRDO. These comparisons are essential for assessing whether is HPE a good stock relative to its competitors in terms of financial health, profitability, and growth trajectory.

Hewlett Packard Enterprise Company analyst rating

Based on 37 analysts. 40.5% rate HPE Buy or Strong Buy.

With 40.5% of analysts recommending a ‘Buy’ or ‘Strong Buy’ for HPE stock, this indicates a moderate level of confidence in the company’s future performance within the Technology sector. While not an overwhelming majority, it suggests a significant portion of the analyst community sees upside potential for HPE stock, despite the overall consensus being ‘Hold’.

Is HPE undervalued or overvalued?

Determining whether HPE stock is undervalued or overvalued requires a close look at various valuation metrics. The P/E ratio for HPE stands at a strikingly negative -252.69x, which contrasts sharply with the Communication Equipment sector average of 54.5x. This negative P/E is typically indicative of the company currently reporting losses, which can complicate traditional valuation comparisons but also suggests a significant discount to the sector based on this metric. Investors considering HPE valuation should understand that a negative P/E points to current unprofitability, making forward-looking metrics and growth prospects particularly important.

A discounted cash flow (DCF) analysis suggests a fair value of $17.92, indicating that the current market price for HPE stock is approximately 39.4% above this intrinsic value estimate. This implies that, based on future cash flow projections, HPE may be considered overvalued at its current price. However, other metrics like the P/B ratio of 1.59x and P/S ratio of 1.1x suggest that HPE stock is relatively cheap when compared to its book value and sales, respectively. These mixed signals highlight the importance of a comprehensive approach when assessing if is HPE a good stock for an investment portfolio.

HPE financial health & key metrics

For value investors examining HPE stock, the financial health metrics present a nuanced picture. While the negative P/E ratio and negative net margin (-0.44%) are significant red flags, indicating current unprofitability, the strong 9.7% free cash flow (FCF) yield is a positive sign, showing the company’s ability to generate cash. The debt-to-equity ratio of 0.87x is moderate, suggesting manageable leverage. However, the DCF fair value of $17.92 implies the stock is currently trading at a premium, prompting careful consideration for those seeking deep value. The robust 14.1% revenue growth points to a company actively expanding its top line, which could eventually translate to improved profitability and a stronger HPE valuation.

Hewlett Packard Enterprise Company earnings history & next report

Hewlett Packard Enterprise Company reported EPS of $0.65, beating estimates by 10.73%. Next earnings: 2026-06-02 with EPS estimate of $0.54.

Looking ahead to the next earnings report on 2026-06-02, investors will be closely watching for Hewlett Packard Enterprise Company’s performance against the EPS estimate of $0.54. Key areas of focus will include revenue growth across its various segments, particularly in high-growth areas like hybrid cloud and AI infrastructure, and any updates on profitability margins. Management’s guidance for the upcoming quarters, insights into their strategic initiatives, and commentary on the broader IT spending environment will be crucial for assessing the future trajectory of HPE stock and whether it can sustain its recent revenue momentum while addressing profitability concerns.

HPE daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

HPE insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent HPE analyst rating changes

Hewlett Packard Enterprise Company stock news today

How does HPE compare to its peers?

For investors exploring alternatives or looking to diversify their portfolio within the Communication Equipment sector, comparing Hewlett Packard Enterprise Company (HPE) to its industry peers is a valuable exercise. Analyzing how HPE stock stacks up against other key players can provide deeper insights into competitive strengths, market positioning, and relative HPE valuation opportunities.

FAQ — Hewlett Packard Enterprise Company (HPE) stock