Jim Cramer - Mad Money Hewlett Packard Enterprise Co. HPE-N SELL Mar 26, 2025

With a P/E at 9.7x we would not say it is too late to buy HPE but the recent quarterly results did miss revenue forecasts which were slight cause for concern. On the otherhand, shares are trading at an all-time high so while the news is promising and it is cheap on an earnings basis we understand the concern. We would not expect too much growth out of HPE even with this news as it is more of a value investment that offers a decent yield of 2.85%.
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He's impressed with their recent showcase of AI plans. Their cost of operations is radically lower than what he expected.

Though it trades at 10x PE, it remains in a highly competitive space, including Dell.

Yesterday, they reported what looked like a strong quarter. Shares popped after hours, but gave back those gains today. Shares have been flat 7-8 years, now dragged down by the messy Juniper Networks takeover, sloppy execution, and now Trump's on-again, off-again tariffs. Their March report was terrible, and shares tanked. Activist Elliott Mgt., though has gotten involved, which offers some hope. Yesterday's report was good: healthy revenue beat, strength across businesses, an earnings beat, good margins. Also, their AI systems is seeing a backlog. Guidance was guarded, but overall positive. Some products are made in Mexico, but comply to the CUSMA, so tariffs will be lower than expected. The quarter was fine, beating low expectations.