Another Tech Stock Gearing Up for Earnings Next Week

The security has added more than 8% this quarter

Digital Content Manager

Aug 24, 2022 at 1:58 PM

The shares of Hewlett Packard Enterprise Co (NYSE:HPE) are flat today, last seen down 0.5% at $14.34, ahead of the tech company's fiscal third-quarter earnings report, which is due out next Tuesday, Aug. 30 after the close. HPE has shed 8.8% this year, though it's managed to add 8.4% during the quarter so far. The stock is cooling from its July and early August rally, which ran out of steam at the 320-day moving average late last week. Just below, the equity's 30-day moving average is keeping some of these losses in check.

hpe aug 24

Analysts have remained mostly bullish. Of the 12 in coverage, seven say "buy" or better, compared to three "hold" ratings, and two "strong sells." Meanwhile, short interest is on the rise, up 3.2% in the last two reporting periods. However, the 28.92 million shares sold short make up just a slim 2.2% of the stock's available float.

HPE has a history of mostly positive post-earnings reactions, looking back over the past two years, with five of these eight instances netting higher next-day returns. Regardless of direction, HPE has averaged a 3% move, which is much smaller than the 6.6% swing the options pits are pricing in this time around.

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