10 hours ago 1

How Is Hewlett Packard Enterprise's Stock Performance Compared to Other Technology Stocks?

Neha Panjwani

Wed, Jun 18, 2025, 7:08 AM 2 min read

Spring, Texas-based Hewlett Packard Enterprise Company (HPE) delivers solutions that allow customers to capture, analyze, and act upon data seamlessly. Valued at $23.9 billion by market cap, the company provides servers, advanced storage products, high-performance computing, AI-driven platforms, and more.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and HPE fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the communication equipment industry. HPE is a trusted IT brand known for reliability and innovation. Its comprehensive product portfolio, including servers, storage, and networking equipment, makes it a one-stop-shop for enterprise needs. HPE's focus on high-performance computing and edge-to-cloud solutions keeps it at the forefront of tech advancements.

Despite its notable strength, HPE slipped 27.4% from its 52-week high of $24.66, achieved on Jan. 22. Over the past three months, HPE stock gained 13%, underperforming the Technology Select Sector SPDR Fund’s (XLK) 12% gains during the same time frame.

In the longer term, shares of HPE declined 16.2% on a YTD basis and fell 17.4% over the past 52 weeks, underperforming XLK’s YTD gains of 3.8% and 4.4% returns over the last year.

To confirm the bearish trend, HPE has been trading below its 200-day moving average since late February. However, the stock is trading above its 50-day moving average since early May.

HPE's underperformance stems from server segment execution issues and industry-wide challenges, including tariff uncertainty, evolving AI policies, and shifting demand patterns affecting order visibility. The company has implemented corrective measures, such as pricing adjustments and inventory reduction.

On Jun. 3, HPE shares closed up more than 2% after reporting its Q2 results. Its adjusted EPS came in at $0.38, down 9.5% year over year. The company’s revenue stood at $7.6 billion, up 5.9% year over year. The company expects full-year adjusted EPS in the range of $1.78 to $1.90.

In the competitive arena of communication equipment, Cisco Systems, Inc. (CSCO) has taken the lead over HPE, showing resilience with a 10.4% gain on a YTD basis and 43% uptick over the past 52 weeks.

Read Entire Article