Daily Stock Analysis: Hewlett Packard Enterprise

Hewlett Packard Enterprises Co has the ticker symbol HPE and is a member of the technology sector as a communication equipment company. It has average value but weak fundamental scores on its track record and is 4.74% under-priced based on its historic valuation. This is my second report of HPE in Vista. I previously talked about HPE on October 22, 2020.

Hewlett Packard Enterprise Co has found favor with investors lately. Most of the 21 analysts following HPE rate it a hold.

Hewlett Packard Enterprise is a supplier of IT infrastructure products and services. 

The company operates in three major segments. Its hybrid IT division primarily sells computer servers, storage arrays, and Pointnext technical services. The intelligent edge group sells Aruba networking products and services. HPE's financial services division offers financing and leasing plans for customers. 

The Palo Alto, California-based company sells on a global scale and has approximately 66,000 employees.

Three key data points gauge dividend equities or funds like Hewlett Packard Enterprise Co:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

HPE Price

HPE's price per share closed at $14.05 yesterday. A year ago its price was $11.79. Price per share has more than recovered from the Covid recession, being 19% above last year's mark. 

If Hewlett Packard Enterprise Co stock trades in the range of $8 to $18 this next year, its recent $14.05 price might rise by $0.95 to reach $15.00 by March 5, 2022. My estimate is slightly below the median of twenty-one HPE broker analyst projections. 

HPE Dividends

Hewlett Packard Enterprise Co's most recently declared quarterly dividend was $0.12 and is payable April 7th. Dividends are estimated to total $0.48 per share annually and yield 3.42% at yesterday's $14.05 closing price. It has paid annually increasing dividends for five years.

HPE Returns

Adding the $0.48 annual HPE anticipated dividend to my $0.95 price upside shows a $1.43 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in HPE Systems International Inc at $14.05 per share and we'd buy 71 shares of HPE stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.14 per share.

Subtract that maybe $0.14 brokerage cost from my estimated $1.43 gross gain per share results in a net gain of $1.29 X 71 shares = $91.59 for a 9.16% net gain on a $977.55 investment.

Hewlett Packard Enterprise Co shows a possible 9.16% net gain including a 3.42% dividend yield. 

Over the next year at this time, a $1000 investment could generate $34.20 in cash dividends. And a single share bought at yesterday's closing price was just over $14.00! So, if HPE is your kind of communication equipment investment, HPE price well-below where dividend income from $1,000 invested exceeds the single share price. This would be a good time to consider a buy of HPE. And based on the recent market activity you might see the price drop lower before buying.

All of the estimates above are speculation based on the past history of Hewlett Packard Enterprise Co. Only time and money invested in this stock will determine its worth.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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