Hewlett Packard Enterprise Stock Lost 10%, Buy Or Wait?

Hewlett Packard Enterprise (HPE) stock is down 10.1% in a day. Already own the stock? You might want to consider holding it. Planning to buy? This might be your opportunity. Consider the following data:

• Size: Hewlett Packard Enterprise is a $30 Bil company with $33 Bil in revenue currently trading at $22.50.
• Fundamentals: Last 12 month revenue growth of 14.0% and operating margin of 6.2%.
• Liquidity: Has Debt to Equity ratio of 0.79 and Cash to Assets ratio of 0.06
• Valuation: Hewlett Packard Enterprise stock is currently trading at P/E multiple of 23.9 and P/EBIT multiple of 14.4
• Has returned (median) 71.2% within a year following sharp dips since 2010. See HPE Dip Buy Analysis.

While we like to buy dips if the fundamentals check out – for HPE, see Buy or Sell HPE Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and HPE drops another 20-30% to $16 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience. Turns out, the stock has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

HPE stock has fallen meaningfully recently and we currently find it attractive. While this may feel like an opportunity, there is significant risk in relying on a single stock. On the other hand, there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Should you buy one stock you like or build a portfolio designed to win across cycles? Our numbers show that High Quality Portfolio has turned stock-picking uncertainty into market-beating consistency. This portfolio is incorporated in asset allocation strategy of Empirical Asset Management – a Boston area wealth manager and Trefis partner – whose asset allocation framework yielded positive returns during the 2008-09 period when the S&P lost more than 40%.

Below are the details, but before that, as a quick background: HPE provides solutions for seamless data capture, analysis, and action, offering general-purpose and workload-optimized servers, as well as wired and wireless networking hardware including Wi-Fi access points and switches.

2022 Inflation Shock

• HPE stock fell 31.8% from a high of $17.56 on 29 March 2022 to $11.98 on 30 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 16 June 2023
• Since then, the stock increased to a high of $26.25 on 9 October 2025 , and currently trades at $22.50

2020 Covid Pandemic

• HPE stock fell 51.6% from a high of $16.17 on 2 January 2020 to $7.83 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 23 April 2021

2018 Correction

• HPE stock fell 36.8% from a high of $19.41 on 6 March 2018 to $12.27 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 5 June 2024

Worried that HPE could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.