Is Hewlett Packard Enterprise (HPE) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Hewlett Packard Enterprise (HPE) is a stock many investors are watching right now. HPE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.90, which compares to its industry's average of 14.72. Over the past 52 weeks, HPE's Forward P/E has been as high as 8.95 and as low as 5.48, with a median of 7.57.
Investors should also note that HPE holds a PEG ratio of 0.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HPE's industry has an average PEG of 1.20 right now. Within the past year, HPE's PEG has been as high as 1.51 and as low as 0.61, with a median of 0.95.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HPE has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.93.
Finally, we should also recognize that HPE has a P/CF ratio of 5.69. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.69. Within the past 12 months, HPE's P/CF has been as high as 7.10 and as low as 3.15, with a median of 5.63.
Value investors will likely look at more than just these metrics, but the above data helps show that Hewlett Packard Enterprise is likely undervalued currently. And when considering the strength of its earnings outlook, HPE sticks out at as one of the market's strongest value stocks.
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Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
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