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8 Stocks to Sell as Fed Continues To Raise Interest Rates - 2 of 8

 
 

#2 - Hewlett-Packard Enterprise Company (NYSE:HPE)

Hewlett-Packard Enterprise Company (NYSE: HPE) - The watchword for Hewlett-Packard is uncertainty. To be sure, Hewlett-Packard's growth has outperformed the industry over the past five years. However, its future growth is less certain with some analysts suggesting that the future may not be as bright. Earnings are expected to decline in the next three years and revenues are supposed to grow at well below the industry and U.S. market averages. Adding to the mixed results is a Return on Equity (ROE) that will be below the industry average. HPE has a current share price is overvalued at $16.31 compared to its projected cash flow value of $10.02. This speaks to the idea that HPE's intrinsic value may not be accurately reflected in its stock price. Although not necessarily considered a high-growth stock option, the company does pay a consistent dividend. Income investors should be aware that the dividend yield is below the average of the top 25% of dividend-paying companies in the U.S.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It operates in six segments: Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other. Read More 
Current Price
$21.61
Consensus Rating
Moderate Buy
Ratings Breakdown
8 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$24.00 (11.1% Upside)

 

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