HPE’s One-Month Rally Offers a Chance to Reevaluate WDC
WDC offers superior revenue growth across key periods, better profitability, and relatively lower valuation.
- WDC’s quarterly revenue grew 30.9%, vs. HPE’s 5.9%.
- In addition, its Last 12 Months growth came in at 89.7%, ahead of HPE’s 11.8%.
- WDC’s LTM margin is higher – 12.8% vs. HPE’s 7.0%.
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Valuation & Performance Overview
| HPE | WDC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 12.4 | 9.6 | WDC |
| Revenue Growth | |||
| Last Quarter | 5.9% | 30.9% | WDC |
| Last 12 Months | 11.8% | 89.7% | WDC |
| Last 3 Year Average | 4.5% | 11.9% | WDC |
| Margins | |||
| Last 12 Months | 7.0% | 12.8% | WDC |
| Last 3 Year Average | 7.9% | 0.6% | HPE |
| Momentum | |||
| Last 3 Year Return | 60.6% | 82.6% | WDC |
Historical Market Performance
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| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| HPE Return | -22% | 37% | 4% | 10% | 29% | -1% | 56% | ||
| WDC Return | -11% | 18% | -52% | 66% | 14% | 51% | 44% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 7% | 94% | <=== | |
| Monthly Win Rates [3] | |||||||||
| HPE Win Rate | 42% | 58% | 50% | 67% | 50% | 50% | 53% | ||
| WDC Win Rate | 42% | 50% | 42% | 58% | 67% | 83% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 50% | 61% | <=== | |
| Max Drawdowns [4] | |||||||||
| HPE Max Drawdown | -50% | -2% | -22% | -13% | -12% | -41% | -23% | ||
| WDC Max Drawdown | -54% | -11% | -54% | -0% | -6% | -32% | -26% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year