Spring, Texas-based Hewlett Packard Enterprise Company (HPE) delivers solutions that allow customers to capture, analyze, and act upon data seamlessly. Valued at $27.9 billion by market cap, the company provides servers, advanced storage products, high-performance computing, AI-driven platforms, and more.
Shares of this global technology leader have outperformed the broader market over the past year. HPE has gained 33.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.7%. However, in 2025, HPE stock is down marginally, compared to SPX’s 2.7% rise on a YTD basis.
Zooming in further, HPE’s outperformance is apparent compared to the Technology Select Sector SPDR Fund (XLK). The exchange-traded fund has gained about 14.3% over the past year. Moreover, HPE’s dip on a YTD basis are in line with the ETF’s losses over the same time frame.
HPE’s strong performance is fueled by growing demand for data center solutions, rapid adoption of GreenLake cloud computing platform as a flexible IT solution, along with consumer’s growing market appetite over AI system offerings, have reinforced its market strength. Additionally, HPE’s acquisition of Juniper Networks, Inc. (JNPR) will create a stronger competitor, offering a robust AI-driven networking portfolio.
On Dec. 5, HPE reported its Q4 results, and its shares closed up more than 10% in the following trading session. Its adjusted EPS of $0.58 exceeded Wall Street expectations of $0.56. The company’s revenue was $8.5 billion, topping Wall Street forecasts of $8.3 billion.
For fiscal 2025, ending in October, analysts expect HPE’s EPS to grow 6.9% to $1.85 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
Among the 15 analysts covering HPE stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This configuration is less bullish than a month ago, with eight analysts suggesting a “Strong Buy.”
On Jan. 28, Evercore ISI analyst Amit Daryanani gave an “In-Line” rating on HPE with a price target of $22, implying a potential upside of 3.8% from current levels.
The mean price target of $24.50 represents a 15.6% premium to HPE’s current price levels. The Street-high price target of $29 suggests an upside potential of 36.9%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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