r/stocks
HPE - Anyone else stocking up?
HPE is undervalued with massive revenue growth (40% YoY) and raised FY26 guidance, offering a cheaper AI data center play than Dell.
- Exceptional financial performance with 40% YoY revenue growth and significant EPS beat against expectations.
- Management raised FY26 EPS, free cash flow, and revenue guidance substantially, indicating strong momentum.
- Valuation appears attractive relative to peers like Dell, positioning it as a pure-play on AI data center infrastructure.
The current forward P/E is 12.8, which is currently really cheap for HPE's sector, but not necessarily cheap for HPE. Their historical PE, after all, was 8.7. HOWEVER!
They're experiencing insane revenue growth compared to the previous years. In 2021 it was +1%, this year it's 40%. The company finally has real potential and I don't think the market is pricing all of that in.
Check out these numbers from its latest report, they're absurd:
- Revenue: $10.68B (+40% YoY)
- Net income: $595M, versus $221M a year ago
- EPS: $0.79 vs $0.53 expected
- Networking revenue: $2.7B (+148%)
- Cloud & AI revenue: $7.7B (+23%)
- Server revenue: $5.5B (+33%)
So they completely tore up their old expectations:
FY26 EPS guidance was raised from $2.30-$2.50 to $3.35-$3.45.
Free cash flow guidance was raised from >$2.0B to >$3.5B.
FY26 revenue growth guidance was increased to 29%-33%.
They also stated they expect to achieve their 2028 financial targets this year.
Legacy, established companies that can somehow benefit from AI are currently in fashion right now. Obviously Dell comes to mind as well, but HPE is a purer data center/cloud play and is currently cheaper, so I'd pick it over Dell.
Price has gone up +150% recently and PE is 49. Sounds like it's fairly priced for those great numbers.
I think your networking revenue number is misleading. You're comparing Pre Juniper Aquisition HPE with post juniper aquisition HPE. They didn't build that revenue, they aquired it, at a cost.
That's a fair point, but I wouldn't knock it down just because the growth wasn't organic. Plus, the acquisition itself is a bullish sign.
Loading up on HPE and NOK - partying like it’s 1999
Hello IT person checking in here. Just want to say anyone int he field that knows this stuff knows HPE been on backlog for like forever (maybe covid perhaps?) DELL swooped in and filled orders that HPE sat on on for MONTHS. My corporate firm bread and butter was HPE gen 9 and they could'nt get em out fast enough and DELL took over simply because they could fill the orders.
HPE aint dead but jesus they lag like a mofo.
Am long from the 20’s a few months ago. bought their glue eating brother HPQ as well. Have not been disappointed with either
i am stocking up. Bought both red days of the disastrous thursday and friday bloodbath markets. I think it hits 70 by Q3
Anything below 50 is an absolute steal imo.
I think so too. I’m personally hyped on this and actually full ported HPE with about 40k originally which has now fallen to 36k between 719 shares a 5 contract $55 call and $65 call for mid july. It touched $64 on earnings for a reason, unless AI trade collapses I don’t see why it wouldn’t return to that level
i bought at 60 and now its 48. im so cooked. cutting loss now. im so fcking sad
it should go back up. i wouldn't worry too much
I may consider
Obsessed might be the wrong word for it. More just have faith and understand the outlook shift. HPE DID go up 100% pre-earnings BUT their earnings adjusted their yearly outlook to their 2028 goals which, depending on what quarter in 2028 they are referring to, is 1.5-2.5 years ahead of schedule. For a company whose main concern is competence and the capex on the Juniper acquisition, as well as them literally hitting 64 in the AH market before opening at $60, I see no reason HPE dosnt make it to $70 or higher by Q3. They have the numbers, they have the momentum, and they have the attention volume to do it. Their swings %s have been averaging 4-5% in whatever direction so the volatility is there as well for entry level investors. The only bearish thing I can think of is the an accounting scandal like what happened to SMCI way back, or the AI trade dies which, if that does happen, we have bigger problems than HPE.
Dell yes
Hope… dangles on a string.
i had a sell order that got triggered when it hit $59 definitely buying back at these prices
falling knife 🔪
i bought at 60 and now its 48. im so cooked. cutting loss now.
buy high sell low
Yes, definitely
I wonder if they got their internal issues sorted out. Ten years ago I worked at an advertising company and they were a client. They were so slow to pay invoices. If you called their AP to inquire, you could be on hold for hours. One of my coworkers who was tasked with making the calls was new to the company, gullible, and eager. She would sit on hold for 6 hours, finally get through, and HP's AP policy was you could only ask for status on two invoices. My boss wanted me to do it sometimes. I would call, put the phone down, do other work, go to lunch, etc. I'd pick up the phone again after a couple hours. If still on hold, put it aside for two more hours. Don't think I ever talked to anyone at HP because, if I ever got off hold, I wasn't paying attention.