Why Hewlett Packard Stock Is Still a Buy After Earnings
Hewlett Packard stock is sizzling Friday after the tech giant beat expectations for its fiscal fourth quarter. Here's what Wall Street is saying.


Hewlett Packard Enterprise (HPE) is one of the best S&P 500 stocks Friday, behind only Lululemon Athletica (LULU), after the tech giant beat top- and bottom-line expectations for its fiscal 2024 fourth quarter.
In the three months ended October 31, Hewlett Packard's revenue increased 15.1% year over year to $8.5 billion, boosted by 31.7% growth in its server segment to $4.7 billion. Its earnings per share (EPS) rose 12% from the year-ago period to 58 cents.
"HPE delivered an exceptional fourth quarter with record quarterly revenue, capping off a strong fiscal 2024. We exceeded our full-year commitments for revenue, EPS, and free cash flow," said Hewlett Packard CEO Antonio Neri in a statement. "Our differentiated portfolio across hybrid cloud, artificial intelligence (AI), and networking, which will be further enhanced with the pending Juniper Networks acquisition, positions us well to capitalize on the market opportunity, accelerating value for our shareholders."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results exceeded analysts' expectations. Wall Street was anticipating revenue of $8.3 billion and earnings of 56 cents per share, according to CNBC.
For its fiscal 2025 first quarter, HPE said it expects to achieve mid-teens percentage revenue growth and earnings per share in the range of 47 cents to 52 cents.
Is Hewlett Packard stock a buy, sell or hold?
Hewlett Packard has had a solid run up the price charts in 2024, up 40% for the year to date vs the S&P 500's 29% return. Unsurprisingly, Wall Street is bullish on the tech stock. According to S&P Global Market Intelligence, the consensus recommendation among the 18 covering analysts it tracks is a Buy.
However, analysts' price targets have failed to keep up with the stock's surge, with the average target of $23.27 right around where HPE's current share price. Wall Street could be encouraged to start raising price targets following Hewlett Packard's post-earnings pop.
Indeed, financial services firm Stifel maintained a Buy rating on the large-cap stock after earnings and raised its price target to $25 from $22.
"We believe shares of Hewlett Packard Enterprise are undervalued, given the company's broad portfolio of enterprise infrastructure hardware, software, and services," says Stifel analyst Matthew Sheerin.
"We see AI servers as a key driver of topline growth heading into fiscal 2025, and expect gross margin to improve on mix and increased attachment of software and services. Our target price of $25 values the stock at around 11 times forward earnings, above its historical average price-to-earnings (P/E) ratio but still well below its peer group," the analyst adds.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Dow Beats 334-Point Retreat on Tech Bite: Stock Market Today
Investors, traders and speculators wonder whether this remains a Magnificent 7 market and how long this AI-driven bull run will last.
-
What Services Are Open During the Government Shutdown?
The Kiplinger Letter As the shutdown drags on, many basic federal services will increasingly be affected.
-
Dow Beats 334-Point Retreat on Tech Bite: Stock Market Today
Investors, traders and speculators wonder whether this remains a Magnificent 7 market and how long this AI-driven bull run will last.
-
What the Rich Know About Investing That You Don't
People like Warren Buffet become people like Warren Buffet by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
Ten Ways Family Offices Can Build Resilience in a Volatile World
Family offices are shifting their global investment priorities and goals in the face of uncertainty, volatile markets and the influence of younger generations.
-
3M, GM, Blue Chips Lead to the Upside: Stock Market Today
The S&P 500 followed the Dow Jones Industrial Average into green territory, but the Nasdaq lagged the other indexes because of its tech exposure.
-
Should Your Brokerage Firm Be Your Bookie? A Financial Professional Weighs In
Some brokerage firms are promoting 'event contracts,' which are essentially yes-or-no wagers, blurring the lines between investing and gambling.
-
Supermarkets Have Become a Pickpockets' Paradise: How to Avoid Falling Victim
Some stores regularly rearrange inventory with the aim of increasing purchases, and they're creating opportunities for thieves to steal from customers.
-
Dow Adds 516 Points on Broad Optimism: Stock Market Today
Easing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
I'm a Wealth Adviser: These Are the Pros and Cons of Alternative Investments in Workplace Retirement Accounts
While alternatives offer diversification and higher potential returns, including them in your workplace retirement plan would require careful consideration.