Core Viewpoint - Analysts forecast that Hewlett Packard Enterprise (HPE) will report quarterly earnings of $0.50 per share, reflecting a year-over-year increase of 4.2%, with revenues expected to reach $7.81 billion, an increase of 15.6% compared to the previous year [1] Earnings Projections - The consensus EPS estimate for the quarter has been adjusted downward by 0.6% over the past 30 days, indicating a reassessment by covering analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Estimates - Revenue from Financial Services is projected to be $884.51 million, a year-over-year change of +1.3% [5] - Revenue from Corporate Investments and other is estimated at $244.54 million, indicating a +2.8% change from the prior year [5] - Revenue from Intelligent Edge is expected to be $1.14 billion, reflecting a -5.2% change from the year-ago quarter [5] - Revenue from Americas is forecasted to reach $3.38 billion, suggesting a +20.7% year-over-year change [6] - Revenue from Asia Pacific and Japan is estimated at $1.59 billion, indicating a +4.8% change from the previous year [6] - Revenue from Europe, Middle East and Africa is expected to be $2.72 billion, reflecting an +11.7% change from the prior year [6] Earnings from Operations - Earnings from Operations in Financial Services are projected to be $80.25 million, compared to $74 million reported in the same quarter last year [7] - Earnings from Operations in Intelligent Edge are expected to reach $250.58 million, down from $353 million reported in the same quarter of the previous year [7] Stock Performance - Shares of Hewlett Packard Enterprise have shown a return of -6.5% over the past month, compared to a -1.3% change in the Zacks S&P 500 composite [7] - HPE holds a Zacks Rank 3 (Hold), indicating expectations to mirror overall market performance in the near future [7]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Hewlett Packard Enterprise (HPE) due to higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - HPE is expected to report earnings of $0.50 per share, reflecting a +4.2% change year-over-year, with revenues projected at $7.81 billion, up 15.6% from the previous year [3]. - The earnings report is scheduled for March 6, 2025, and could lead to stock price increases if results exceed expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.6% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for HPE is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.36%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [8]. - HPE currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - HPE has beaten consensus EPS estimates in the last four quarters, with a +5.45% surprise in the most recent quarter [12][13]. Conclusion - While HPE may not appear to be a compelling earnings-beat candidate, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Core Viewpoint - Hewlett Packard Enterprise (HPE) stock is currently undervalued compared to the industry average, trading at a forward 12-month P/E ratio of 9.82 versus the industry average of 19.19 [1] Group 1: Stock Performance - HPE stock has increased by 35.7% over the past year, outperforming the Zacks Computer and Technology sector and the S&P 500 index, which returned 22.2% and 21.8% respectively [3] - HPE has outperformed its peers, including Micron (MU), Seagate Technology (STX), and Advanced Micro Devices (AMD) [3] Group 2: Key Growth Drivers - The growth in HPE's stock is driven by strong performance in its GreenLake and AI systems segments [5] - GreenLake's customer base grew by approximately 34.5% year over year, reaching 39,000 customers in Q4 of fiscal 2024, contributing to an annualized revenue run rate exceeding $1.9 billion, which is a 48% increase year over year [6] - HPE reported $6.7 billion in cumulative orders for AI products and services since Q1 of fiscal 2023, with a backlog of $3.5 billion in new AI orders as of Q4 fiscal 2024 [7] Group 3: Financial Outlook - The Zacks Consensus Estimate for HPE's fiscal 2025 revenues is $32.4 billion, indicating a year-over-year growth of 7.5%, while earnings are estimated at $2.11, reflecting a 6% growth year over year [8] - HPE has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 7.84% [8] Group 4: Investment Recommendation - HPE's growth in GreenLake and AI, along with its attractive valuation and strong past performance, suggest it is a prudent investment opportunity [9]

Core Points - Hewlett Packard Enterprise (HPE) has begun notifying individuals whose personal information was stolen during a cyberattack attributed to Russian government hackers [1][5] - The breach involved sensitive data such as Social Security numbers, driver's license information, and credit card numbers [2] - The cyberattack began in May 2023, targeting HPE's email systems and SharePoint environments, which are hosted by Microsoft [3] - HPE disclosed that the hackers accessed internal email boxes through a compromised account, primarily affecting individuals in cybersecurity and business teams [4] - The attack is linked to a group known as Midnight Blizzard, associated with Russia's foreign intelligence service, SVR, which has been involved in other significant cyber incidents [5] Data Breach Details - More than a dozen individuals have been notified about the data breach [1] - The breach was publicly disclosed by HPE in January 2024, confirming the exfiltration of a "small number" of email mailboxes and SharePoint files [3] - Microsoft also confirmed that its corporate network was compromised by the same group, indicating a broader threat landscape [5]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [4] - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score helps investors capitalize on price trends by evaluating short-term price changes and earnings estimate shifts [6] - The VGM Score combines the three Style Scores to identify stocks with the best value, growth potential, and momentum, serving as a strong indicator alongside the Zacks Rank [7] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, aiding investors in portfolio building [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] Stock Example: Hewlett Packard Enterprise (HPE) - Hewlett Packard Enterprise, formed from the split of Hewlett-Packard Company, is currently rated 3 (Hold) with a VGM Score of A [12] - HPE has a Value Style Score of A, supported by a forward P/E ratio of 9.89, making it appealing to value investors [13] - The Zacks Consensus Estimate for HPE's fiscal 2025 earnings has increased to $2.11 per share, with an average earnings surprise of 7.8% [13]

Core Viewpoint - Hewlett Packard Enterprise (HPE) has experienced a significant stock performance, gaining 38% over the past year, outperforming both the Zacks Computer and Technology sector and the S&P 500 index [1]. However, a recent lawsuit from the U.S. Department of Justice (DOJ) has raised concerns regarding HPE's $14 billion acquisition of Juniper Networks, causing a 2% drop in stock price [2]. Company Performance - HPE's stock has outperformed the Zacks Computer - Integrated Systems industry's decline of 4.3% over the past year [1]. The company is in the process of acquiring Juniper Networks for $40 per share, aimed at enhancing its networking business and offering next-generation AI-native networking solutions [3]. Regulatory Challenges - The DOJ has filed a lawsuit to block the merger, arguing that it would reduce competition in the networking market, where HPE, Juniper, and Cisco collectively hold about 70% market share [4][6]. The DOJ fears that the merger would lead to fewer competitors, lower prices, and hinder innovation [6]. Market Dynamics - HPE contends that there are eight companies competing in the $180 billion networking market, including Arista Networks and Fortinet, which also offer networking products [6][7]. The acquisition is expected to enhance HPE's portfolio and boost its revenue growth, with projected revenue increases of 7.5% and 5% for fiscal 2025 and 2026, respectively [9]. Financial Implications - HPE reported a $135 million increase in charges related to acquisitions, primarily due to the pending acquisition of Juniper Networks, with expectations for further cost increases due to the DOJ's intervention [10]. The merger has received approval from the European Union and the U.K. Competition and Markets Authority, providing some positive outlook for HPE [11]. Growth Areas - Despite regulatory challenges, HPE has seen strong performance in its GreenLake and AI systems segments. GreenLake's customer base grew by approximately 34.5% year over year, reaching 39,000 customers, with an annualized revenue run rate exceeding $1.9 billion [13]. Additionally, HPE reported $6.7 billion in cumulative orders for AI products since the first quarter of fiscal 2023, with backlogs valued at $3.5 billion [14]. Conclusion - The regulatory hurdles associated with the Juniper Networks acquisition present challenges, including rising costs and delayed revenue recognition. However, HPE's growth in GreenLake and AI systems indicates promising long-term potential for the company [15].

Stock Performance - Hewlett Packard Enterprise (HPE) shares dropped 12.3% from Monday through Tuesday amid the global tech selloff [1] - HPE shares are up 2.5% today, trading at $21.99 [1] - HPE hit a record high of $24.66 on Jan 22 before this week's pullback [3] - HPE sports a 39% year-over-year lead [3] Technical Analysis - HPE is testing its 126-day moving average, a historically bullish trendline [1] - HPE has traded down to this trendline five times in the last three years after significant periods above it [2] - In the past, when HPE met these conditions, the stock was higher one month later 80% of the time with an average 6.7% gain [2] Options Market Activity - Puts have been more popular than usual in the options pits for HPE [3] - The stock's 50-day put/call volume ratio ranks higher than 96% of readings from the past year [3] - An unwinding of this pessimism could provide tailwinds for the stock [3]

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, providing complementary indicators to the Zacks Rank [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies trends in stock prices and earnings outlooks, helping investors time their positions effectively [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still carry risks due to downward-trending earnings estimates [10] Company Spotlight: Hewlett Packard Enterprise (HPE) - Hewlett Packard Enterprise, formed from the split of Hewlett-Packard Company, is currently rated 3 (Hold) with a VGM Score of A [11] - HPE has a Momentum Style Score of A, with a 0.5% increase in shares over the past four weeks and a consensus earnings estimate of $2.10 per share for fiscal 2025 [12]

Core Viewpoint - Hewlett-Packard Enterprise (HPE) is investigating a data breach after a hacker known as "IntelBroker" claimed to have stolen sensitive information from the company [1][2]. Group 1: Data Breach Details - The hacker claims to have stolen product source code, private GitHub repositories, and access keys to several HPE services, including APIs and platforms like WePay, GitHub, and GitLab [2]. - IntelBroker also claims to have accessed HPE user data, including personally identifiable information related to past deliveries [2]. Group 2: Company Response - HPE became aware of the claims on January 16 and activated its cyber response protocols, disabling related credentials and launching an investigation [3]. - HPE stated that there is no operational impact to the business at this time, nor evidence that customer information is involved [3]. Group 3: Historical Context - A year prior, HPE confirmed that a Russia-linked hacking group, Midnight Blizzard, had compromised its cloud-based email environment, accessing and exfiltrating data from a small percentage of mailboxes [4].

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores. ...