Should I Buy HPE? HPE 2026 Analysis

Should You Buy Hewlett Packard Enterprise Co (HPE) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

21.710

1 Day change

0.51%

52 Week Range

26.440

Analysis Updated At

2026/01/29

Buy now for a long-term position. HPE is sitting near a technical pivot with a fresh SwingMax entry signal, options sentiment is bullish (puts < calls), and recent news supports the AI/private cloud narrative. While the latest quarter showed sharp earnings pressure despite strong revenue growth, Wall Street’s price targets (high-$20s to $30) still imply meaningful upside from ~$21.7, making it a reasonable long-term buy for a beginner who doesn’t want to wait for a perfect entry.

Technical Analysis

Price is near the pivot (21.353) at 21.68, suggesting a balanced setup rather than an extended move. RSI(6) ~51.7 is neutral (no overbought/oversold). MACD histogram is slightly negative (-0.0361) but contracting, which often indicates bearish momentum is fading and the trend may be stabilizing. Moving averages are converging, consistent with consolidation. Key levels: support S1 20.394 (then S2 19.801); resistance R1 22.311 (then R2 22.904). Pattern-based forecast provided suggests modest positive drift over 1 week (~+1.81%) and 1 month (~+3.62%), consistent with a slow uptrend bias rather than a breakout.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Put/Call open interest ratio of 0.74 and volume put/call of 0.51 both point to bullish/constructive positioning (more call demand than put demand). Implied volatility is elevated (30D IV ~55.7; IV percentile ~95.2), meaning options are pricing in larger-than-usual moves; sentiment looks optimistic but with higher expected swings. Today’s option volume (19,763) is below recent 5D/10D averages, suggesting no extreme one-day speculation spike despite constructive skew.

Technical Summary

Sell

Buy

Positive Catalysts

- Intellectia Proprietary Trading Signals: SwingMax issued an entry signal on 2026-01-27 (very recent), which is treated as a strong near-term entry confirmation.
- News/event: 2026-01-26 partnership with New Zealand’s 2degrees to build a private AI platform (security/data sovereignty + AI acceleration) supports the AI infrastructure/services narrative.
- Analyst tone is broadly supportive with multiple bullish ratings and raised targets (e.g., Argus to $30, Barclays to $28; Evercore still Outperform at $28), implying upside from current levels.
- Options positioning is bullish (puts < calls), reinforcing positive sentiment.

Neutral/Negative Catalysts

- Latest reported quarter (2025/Q4) had severe profitability compression: net income and EPS down ~89% YoY despite revenue growth, which can weigh on near-term sentiment until margins stabilize.
- Morgan Stanley downgrade (to Equal Weight) flagged hardware/memory-cycle margin risk into 2026 and potential multiple compression.
- Technicals are not strongly trending upward yet (neutral RSI, slightly negative MACD), implying gains may be gradual rather than immediate.
- No notable supportive signal from insider/hedge fund trend data (both described as neutral).

Financial Performance

Latest quarter: 2025/Q4. Revenue grew strongly to $9.679B (+14.44% YoY), indicating demand/recovery in top-line. However, profitability deteriorated sharply: Net income fell to $146M (-89.11% YoY) and EPS to $0.11 (-88.89% YoY). Gross margin ticked up slightly to 30.28% (+0.93% YoY), but the earnings drop suggests higher operating costs, mix, or other below-the-line pressures. Net: strong growth, but the key issue to watch is earnings normalization/margin resilience as AI-related opportunities scale.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent analyst trend is mixed but leaning positive overall: multiple firms reaffirmed/raised targets post-earnings (Argus raised PT to $30 and kept Buy; Barclays raised to $28 and kept Overweight; Evercore kept Outperform $28 but removed it from a tactical list). The main counterpoint is Morgan Stanley’s downgrade to Equal Weight with a reduced PT ($25) on memory-cycle and margin-risk concerns into 2026. Wall Street pros: inexpensive valuation narrative + AI participation upside + generally raised/maintained bullish targets. Cons: near-term hardware/memory-cycle pressure and the sharp earnings decline in the latest quarter. Politician/congress trading check: no recent congress trading data available in the last 90 days.

16 Analyst Rating

Wall Street analysts forecast HPE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HPE is 27.13 USD with a low forecast of 21 USD and a high forecast of 31 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

8 Buy

8 Hold

0 Sell

Moderate Buy

Current: 21.600

Low

Averages

27.13

High

Current: 21.600

Low

Averages

27.13

High

Evercore ISI

Outperform

downgrade

$28

AI Analysis

2025-12-11

Reason

Evercore ISI

Price Target

$28

AI Analysis

2025-12-11

downgrade

Outperform

Reason

Evercore ISI removed HP Enterprise from the firm's "Tactical Outperform" list following the company's October-end quarterly earnings release last week. While there was "some noise" around the fiscal Q4 print and January quarter revenue guidance below the Street, the firm believes its long-term bull thesis remains "largely intact" and notes that its out-year estimates remained largely unchanged. The firm has an Outperform rating and $28 price target on HP Enterprise shares.

Argus

Buy

maintain

$25 -> $30

2025-12-10

Reason

Argus

Price Target

$25 -> $30

2025-12-10

maintain

Buy

Reason

Argus raised the firm's price target on HP Enterprise to $30 from $25 and keeps a Buy rating on the shares. The company had missed consensus revenue expectations for Q4 as server sales unexpectedly declined, but the firm believes this business will accelerate in FY26, the analyst tells investors in a research note. HP Enterprise trades at inexpensive current valuations, which do not reflect the potential for top- and bottom-line prospects given the many ways in which the company can participate in the AI market, the firm added.

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HPE Should I Buy

HPE Should I Buy

Should You Buy Hewlett Packard Enterprise Co (HPE) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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