u/RightCut4940 ·
Reddit — r/stocks
· June 06, 2026 at 20:03
· ⬆ 24 pts
· 💬 17 comments
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The current forward P/E is 12.8, which is currently really cheap for HPE's sector, but not necessarily cheap for HPE. Their historical PE, after all, was 8.7. HOWEVER!
They're experiencing insane revenue growth compared to the previous years. In 2021 it was +1%, this year it's 40%. The company finally has real potential and I don't think the market is pricing all of that in.
Check out these numbers from its latest report, they're absurd:
* Revenue: **$10.68B (+40% YoY)**
* Net income: **$595M**, versus $221M a year ago
* EPS: **$0.79 vs $0.53 expected**
* Networking revenue: **$2.7B (+148%)**
* Cloud & AI revenue: **$7.7B (+23%)**
* Server revenue: **$5.5B (+33%)**
So they completely tore up their old expectations:
**FY26 EPS guidance was raised from $2.30-$2.50 to $3.35-$3.45.**
**Free cash flow guidance was raised from >$2.0B to >$3.5B.**
**FY26 revenue growth guidance was increased to 29%-33%.**
They also stated they expect to achieve their 2028 financial targets this year.
Legacy, established companies that can somehow benefit from AI are currently in fashion right now. Obviously Dell comes to mind as well, but HPE is a purer data center/cloud play and is currently cheaper, so I'd pick it over Dell.