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Spring, Texas-based Hewlett Packard Enterprise Company (HPE) delivers solutions that allow customers to capture, analyze, and act upon data seamlessly. Valued at $27.4 billion by market cap, the company provides servers, advanced storage products, high-performance computing, AI-driven platforms, and more.
Shares of this global technology leader have underperformed the broader market over the past year. HPE has gained 9.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17%. In 2025, HPE stock is down 2.2%, compared to SPX’s 8.2% rise on a YTD basis.
Narrowing the focus, HPE’s underperformance is also apparent compared to the Technology Select Sector SPDR Fund (XLK). The exchange-traded fund has gained about 26.1% over the past year. Moreover, XLK’s 13.8% gains on a YTD basis outshine the stock’s single-digit dip over the same time frame.
HPE's underperformance stems from execution issues in the server segment and industry-wide challenges, including tariff uncertainty, evolving AI policies, and shifting demand patterns that affect order visibility. The company has implemented corrective measures, including pricing adjustments and inventory reductions.
On Jun. 3, HPE shares closed up more than 2% after reporting its Q2 results. Its adjusted EPS came in at $0.38, down 9.5% year-over-year. The company’s revenue totaled $7.6 billion, representing a 5.9% year-over-year increase. The company expects full-year adjusted EPS in the range of $1.78 to $1.90.
For the current fiscal year, ending in October, analysts expect HPE’s EPS to decline 9.3% to $1.57 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
Among the 18 analysts covering HPE stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”
This configuration is more bullish than a month ago, with six analysts suggesting a “Strong Buy.”
On Jul. 24, Citigroup Inc. (C) resumed coverage of HPE with a “Buy” rating with a $25 price target, implying a potential upside of 19.2% from current levels.
The mean price target of $23.40 represents an 11.5% premium to HPE’s current price levels. The Street-high price target of $30 suggests an ambitious upside potential of 43%.
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.
