Hewlett Packard Enterprise Company (HPE): A Bull Case Theory

We came across a bullish thesis on Hewlett Packard Enterprise Company on CopyCat Invest’s Substack. In this article, we will summarize the bulls’ thesis on HPE. Hewlett Packard Enterprise Company's share was trading at $25.16 as of September 22nd. HPE’s trailing and forward P/E were 29.60 and 10.73 respectively according to Yahoo Finance.

Hewlett Packard Enterprise (HPE) is positioned as a compelling investment opportunity despite trading near its recent highs. The stock currently trades at approximately 13x earnings, which may appear elevated given recent weak performance, but underlying fundamentals suggest significant upside. Recent quarters have been impacted by lower margins, yet the company has proactively taken steps to address these challenges, including operational efficiencies and targeted cost management initiatives designed to improve profitability.

A key catalyst for future growth and margin expansion is HPE’s recent acquisition of Juniper Networks, which is expected to enhance revenue streams and contribute to higher overall profitability over time. This strategic move strengthens HPE’s positioning in the enterprise technology and networking space, providing both scale and complementary capabilities to its existing portfolio. In addition, HPE pays a 2% dividend, offering investors steady income alongside potential capital appreciation. With earnings expected to improve over the next several years, the stock’s relatively low multiple compared to peers makes it attractive from a valuation perspective.

The combination of strategic acquisitions, operational improvements, and an improving earnings outlook suggests that HPE is well-positioned to deliver meaningful shareholder returns. Investors could benefit not only from potential stock price appreciation as earnings recover, but also from the stability provided by dividend income. Overall, HPE represents a balanced opportunity with upside potential underpinned by strategic initiatives, margin improvement, and a favorable valuation relative to projected earnings growth.

Previously we covered a bullish thesis on Dell Technologies Inc. (DELL) by Magnus Ofstad in March 2025, highlighting strong server growth, AI-driven infrastructure positioning, and disciplined capital allocation. The stock has appreciated approximately by 48.35% since our coverage. The thesis still stands as DELL continues generating robust cash flow and supporting dividends. CopyCat Invest shares a similar perspective but emphasizes HPE’s margin improvements and Juniper acquisition as growth catalysts.

Hewlett Packard Enterprise Company is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held HPE at the end of the second quarter which was 45 in the previous quarter. While we acknowledge the potential of HPE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.