HPE or IBM: Which Is the Better Value Stock Right Now?

Core Viewpoint - The article compares Hewlett Packard Enterprise (HPE) and IBM to determine which stock is more attractive to value investors, highlighting HPE's stronger performance in earnings estimates and valuation metrics [1][3]. Group 1: Zacks Rank and Analyst Outlook - HPE has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to IBM, which has a Zacks Rank of 3 (Hold) [1]. - The improving analyst outlook for HPE suggests a more positive sentiment among analysts regarding its future performance [1]. Group 2: Valuation Metrics - HPE's forward P/E ratio is 11.08, significantly lower than IBM's forward P/E of 18.47, indicating that HPE may be undervalued relative to IBM [2]. - HPE has a PEG ratio of 2.54, while IBM's PEG ratio is 4.51, suggesting that HPE offers better value when considering expected earnings growth [2]. - HPE's P/B ratio is 1.27, compared to IBM's P/B of 7.20, further supporting the notion that HPE is more attractively valued [2]. Group 3: Overall Value Assessment - HPE's overall Value grade is A, while IBM's Value grade is C, indicating that HPE is perceived as a superior option for value investors based on various valuation metrics [3].