HPE Reels in Bull Notes After Besting Analyst Estimates

The security currently sports attractively priced premiums

Digital Content Manager
Mar 3, 2021 at 9:39 AM
facebook twitter linkedin

The shares of Hewlett Packard Enterprise Co (NYSE: HPE) are up 0.3% at $14.55 at last check, after the tech concern reported better-than-expected first-quarter earnings of 52 cents per share -- higher than Wall Street's estimates of 41 cents per share -- as well as a revenue beat. The company also raised its fiscal year 2021 guidance above analysts' estimates. In response, the equity earned no fewer than six price-target hikes this morning, including one from J. P. Morgan Securities to $17 from $16. 

On the charts, the security is fresh off a March 1, annual high of $14.97. Shares pivoted higher in November, with support from the 40-day moving average, which also stepped in to contain a January pullback. And while overhead pressure at the $15 level remains, HPE has added 53.1% over the past six months. 

Analysts are mostly pessimistic towards the stock, leaving plenty of room for upgrades moving forward. Of the 12 analysts in question, seven carry a tepid "hold" or worse rating. Meanwhile, coming into today, the 12-month consensus target price of $14.78 was in line with last night's close. 

The security could also benefit from a shift in the options pits, which leans bearish. This is per HPE's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 85% of readings from the past year. In other words, puts are being picked up at a faster-than-usual pace.

Lastly, HPE options can be bought at a discount at this time. The stock's Schaeffer's Volatility Index (SVI) of 47% sits higher than just 15% of all other readings in its annual range, suggesting options players are pricing in relatively low volatility expectations right now. 


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners