Hewlett Packard Trends Bullish Ahead Of Q2 Earnings: AI Servers, High Margin Offerings To Drive Growth

Hewlett Packard Enterprise Co HPE will report second-quarter earnings after hours on Tuesday, June 4.

Wall Street expects 39 cents in EPS and $6.83 billion in revenues.

The stock is up 19.51% over the past year, 5.71% year-to-date. Hewlett Packard, or HP, is poised to benefit from the increasing demand for artificial intelligence (AI).

HP is also diversifying its business through investments in networking capabilities. For example, the company’s acquisition of Juniper Networks and focus on AI-optimized servers and high-margin offerings are driving growth.

The introduction of HPE Aruba Networking Enterprise Private 5G is expected to enhance its offerings in the private cellular network market.

However, economic concerns may impact near-term prospects for the company. Let’s look at how the stock currently maps against Wall Street estimates.

Chart: Moderately Bullish With Slight Buying Pressure

Chart: Benzinga Pro

HP’s stock price is currently below the five-day exponential moving average, creating a short-term bearish signal, while above the 20-day, 50-day and 200-day SMAs, indicating bullish signals.

Chart: Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator at 0.25 is positive, further supporting the bullish momentum. The Relative Strength Index (RSI) at 53.74 suggests that HPE stock is neither overbought nor oversold.

Bollinger Bands support a bullish sentiment with the stock trading within the upper band.

Overall, the technical analysis indicates that HPE stock is likely to continue its bullish trend in the near term.

Also Read: HPE Simplifies Deployment of Private Cellular Networks With Launch of HPE Aruba Networking Enterprise Private 5G

Hewlett Packard Analysts Neutral On The Stock

Ratings & Consensus Estimates: The consensus analyst rating on Hewlett Packard stock stands at a Neutral currently with a price target of $15.83. However, three recent analyst ratings from Wells Fargo, Morgan Stanley and Stifel indicate an implied 3.88% upside for Hewlett Packard Enterprise Co, with an average price target of $18.67.

HPE Price Action: Hewlett Packard stock closed the trading day, Monday at $17.95, up 1.70%.

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