10 Stocks That Will Go to the Moon According to Reddit

4) Hewlett Packard Enterprise Company (NYSE:HPE)

Number of hedge fund holders: 58

Hewlett Packard Enterprise Company (NYSE:HPE) is a supplier of IT infrastructure products and services.

Hewlett Packard Enterprise Company (NYSE:HPE) saw its 3Q 2024 revenues jump by 10% YoY to $7.7 billion, beating the analysts’ expectations. This outperformance was supported by a surge in server revenue because of demand for artificial intelligence. The company’s edge-to-cloud strategy throughout networking, hybrid cloud, and Al should continue to act as a critical tailwind moving forward. Hewlett Packard Enterprise Company (NYSE:HPE) increased its full-year EPS outlook to $1.68 and $1.73 (from $1.61 to $1.71 previously). However, it maintained a revenue growth estimate of 1% – 3%.

Hewlett Packard Enterprise Company (NYSE:HPE) is well-placed to capitalize on the demand for Al servers, which has been picking up due to increased investments in Al infrastructure by businesses. Hewlett Packard Enterprise Company (NYSE:HPE)’s stock is well-placed to take off as its cyclical slowdown is ending, and Al-driven sales of its newer servers should help offset the weakness of other business segments.

Moving forward, the company’s expertise in designing, manufacturing, and running Al systems at scale should help it fuel the growth of cumulative Al system orders. This, together with prudent cost management and expectations of high FCF, should help Hewlett Packard Enterprise Company (NYSE:HPE) over the medium term.

Analysts at Bank of America upped their price objective on shares of Hewlett Packard Enterprise Company (NYSE:HPE) from $22.00 to $24.00, giving it a “Neutral” rating on 21st June. As per Insider Monkey’s 2Q 2024 database, 58 hedge funds were long Hewlett Packard Enterprise Company (NYSE:HPE).