Hewlett Packard Enterprise Company (HPE) Down 4.5% — Should I Get Rid of This Name?
Hewlett Packard Enterprise Company (HPE) came under pressure in the latest session, retreating 4.55% to close at $20.47 on the NYSE. The stock lost $0.97 from the prior close of $21.44, extending a pattern of sliding price action that has left shares losing ground in recent trading. Today’s move pushes HPE further away from its 52-week peak of $26.44 set on Oct. 8, 2025, leaving the stock trading roughly 23% below that high and reinforcing a picture of a name facing persistent headwinds rather than building positive momentum.
Trading activity also pointed to waning investor interest. Volume came in at about 8.2 million shares, well below the 90-day average of roughly 28.4 million, suggesting the latest pullback occurred on lighter-than-usual participation. Even so, the percentage decline stands out in a sector where several large-cap technology peers such as NVIDIA (NVDA), Apple (AAPL), and Microsoft (MSFT) have generally shown more resilient price trends over the past year. In that context, HPE’s recent retreat and its widening gap from the 52-week high underscore a stock that continues to slide rather than stabilize, keeping the near-term tone for the shares firmly under pressure.
Why Hewlett Packard Enterprise Company Price is Moving Lower
Hewlett Packard Enterprise Company (HPE) has come under sustained pressure over the past week, with the stock sliding roughly 7%–9% from recent highs and trading in a tighter band around the low‑$20s. The weakness is unfolding without any fresh company-specific catalysts, suggesting investors are reassessing prior optimism around AI-related product announcements and recent gains. Instead of building on that momentum, the stock has pulled back as traders lock in profits and reprice expectations against a backdrop of elevated share volatility. With a beta near 1.9, HPE tends to amplify broader market swings, so even modest risk-off sentiment can translate into outsized downside moves in the share price.
Fundamentally, concerns center on the quality and sustainability of HPE’s growth. The company is posting double-digit revenue expansion, but that positive headline is being overshadowed by very thin profitability — a profit margin of just 0.16% and negative earnings per share. A negative P/E multiple at current levels signals that markets are paying up for a turnaround that has yet to be convincingly delivered. In a technology landscape dominated by more profitable, cash-generative peers such as NVIDIA, Apple, or Microsoft investors appear increasingly cautious about owning a relatively low-margin hardware and infrastructure name at this stage of the cycle. That combination of rich expectations, weak earnings power and high volatility is weighing on sentiment, prompting renewed selling pressure in HPE despite its dividend yield.
What is the Hewlett Packard Enterprise Company Rating - Should I Sell?
Weiss Ratings assigns HPE a C rating. Current recommendation is Hold. That middle-of-the-road grade signals a stock that has not earned clear conviction from a risk-reward standpoint and warrants caution from investors looking for stronger, more consistent performers in information technology.
The most concerning element is the Weak Growth Index, which stands at odds with Hewlett Packard’s 14.44% revenue growth. That top-line expansion has not translated into meaningful profitability or shareholder benefit. Profit margin is just 0.16%, and return on equity is a very low 0.23%, indicating that the company is generating little economic value from shareholders’ capital. The extremely high forward price-to-earnings ratio of -375.48 also raises questions about valuation and earnings quality, leaving limited margin for error.
Risk indicators further temper the case for HPE. The Weak Volatility Index points to a pattern where price moves have not rewarded the risk investors have taken, while the Fair Total Return Index indicates only middling performance relative to alternatives. Even with a Fair Dividend Index, income potential is not strong enough to offset weak profitability and uneven returns for long-term holders.
Compared with large-cap technology peers, HPE looks less compelling on a risk-adjusted basis. NVIDIA Corporation (NVDA, B), Apple Inc. (AAPL, B), and Microsoft Corporation (MSFT, B) all earn Buy-level ratings, reflecting stronger overall profiles. By contrast, HPE’s C (Hold) rating signals that investors face a higher probability of disappointment if they expect it to keep pace with the sector’s leading names.
About Hewlett Packard Enterprise Company
Hewlett Packard Enterprise Company (HPE) is a global information technology infrastructure vendor focused on enterprise-grade hardware, associated software and support services. Spun out of the former Hewlett-Packard, the company concentrates on on‑premises and hybrid cloud solutions rather than consumer devices. Its portfolio centers on servers, storage systems, networking equipment and integrated solutions that support data centers, edge computing and mission‑critical workloads. HPE’s core offerings include the HPE ProLiant server line, HPE Alletra and HPE Nimble storage platforms, as well as Aruba Networking products for campus and branch environments. These are marketed to large enterprises, government agencies and mid-sized organizations that maintain complex IT environments.
Beyond hardware, Hewlett Packard Enterprise layers in management software, consumption-based IT models and services that attempt to lock customers into its ecosystem. HPE GreenLake, its flagship as‑a‑service platform, is designed to mimic public cloud economics for on‑premises infrastructure, but competes directly with more agile cloud-native providers and hyperscalers. The company also offers advisory, deployment and support services to keep legacy infrastructure running, which reinforces customer dependence on HPE’s aging installed base rather than driving aggressive modernization. In the highly competitive technology hardware and equipment industry, Hewlett Packard Enterprise’s market position leans heavily on historical relationships and long-term contracts, while its product set often lags pure-play cloud competitors and more specialized infrastructure vendors that are shaping the next phase of data center and edge architectures.
Investor Outlook
With Hewlett Packard Enterprise Company (HPE) carrying a C (Hold) Weiss Rating, investors may want to exercise caution and closely track whether recent price weakness stabilizes or extends into a more prolonged downtrend. Watch for shifts in Information Technology sector sentiment and any deterioration in risk factors that could pressure the current Hold stance toward a less favorable profile. See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.
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