Hewlett Packard Enterprise (HPE): Wake Up and Smell the Earnings Momentum

Hewlett Packard Enterprises (HPE) is riding the same hot AI trend as DELL. That being a massive increase in the need for hardware (especially servers) for the surge in AI center demand.

This was on full display, once again, in their early September earnings beat. Here are the highlights:

• Revenue up 34% year over year
• EPS up 405% year over year
• Highest profit margins in company history
• Raised guidance for the future (read: more good times ahead)

Yes, this formerly sleepy company is wide awake thanks to the AI revolution. And that is how a 34% revenue increase can equate to 405% earnings growth because demand is so high that they can pretty much name their own price. 

Shares rallied on the news…but not nearly as much as it should as this continues to be one of the most overlooked winners in AI. That shows up in their modest PE of 11 times next year’s earnings. 

This explains why Wall Street analysts are pounding the table with much higher target prices. $69 is the average target which is 33% above the current level. However, the street high is $86 calling for 65% gains in the year ahead. 

The Zen Ratings confirms the bullish case for HPE. Not just A rated, but in the top 3% of all stocks analyzed. Now let’s drill down into the Component Grades:

Top 25% Safety (rarely does growth and safety come together…yet here it is)

Top 24% AI Factor (our usage of AI that finds patterns in stocks that often points to the most timely outperformers). 

Top 24% for Value

Top 14% Momentum

Top 6% for Sentiment (the Smart money is already loading up on shares.)

Top 2% for Growth (best predictor of future beats)

That is a lot of fundamental goodness packed into shares. Best of all is the earnings momentum story from a string of 6 impressive beat and raise quarters that shows no signs of slowing. 

It is this earnings momentum that has me feeling that even that $86 price target may prove on the low side if the AI boom continues to increase demand for their servers. That is why I believe this could be our next 100%+ winner.

What To Do Next?

Hewlett Packard Enterprise (HPE) is just one of 20 stellar stocks found in my Zen Investor portfolio.

And that portfolio generated a +50.94% year to date in 2026…yes 4X better than the S&P 500. 

How is that possible?  

Perhaps it’s time to discover my unique investing process meant to unlock more 100%+ winners…and how to see my current top 20 stocks: 

Discover Zen Investor & Top 20 Stocks Now > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

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