With Hewlett Packard Enterprise Stock Sliding, Have You Assessed The Risk?

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HPE: Hewlett Packard Enterprise logo
HPE
Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE) stock is down 11.1% in 5 trading days. The recent slide reflects a disappointing fiscal 2026 outlook and analyst downgrades due to memory price spikes, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?

Before judging its downturn reslience, let’s look at where Hewlett Packard Enterprise stands today.

  • Size: Hewlett Packard Enterprise is a $28 Bil company with $33 Bil in revenue currently trading at $21.23.
  • Fundamentals: Last 12 month revenue growth of 14.0% and operating margin of 6.2%.
  • Liquidity: Has Debt to Equity ratio of 0.84 and Cash to Assets ratio of 0.06
  • Valuation: Hewlett Packard Enterprise stock is currently trading at P/E multiple of 22.5 and P/EBIT multiple of 13.6
  • Has returned (median) 64% within a year following sharp dips since 2010. See HPE Dip Buy Analysis.

These metrics point to a Moderate operational performance, alongside Low valuation – making the stock Attractive. For details, see Buy or Sell HPE Stock

That brings us to the key consideration for investors worried about this fall: how resilient is HPE stock if markets turn south? This is where our downturn resilience framework comes in. Suppose HPE stock falls another 20-30% to $15 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.

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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 $21.23

  HPE S&P 500
% Change from Pre-Recession Peak -31.8% -25.4%
Time to Full Recovery 259 days 464 days

 
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

  HPE S&P 500
% Change from Pre-Recession Peak -51.6% -33.9%
Time to Full Recovery 396 days 148 days

 
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

  HPE S&P 500
% Change from Pre-Recession Peak -36.8% -19.8%
Time to Full Recovery 1990 days 120 days

 
Feeling jittery about HPE stock? Consider portfolio approach.

Why Stock Pickers Win More With Multi Asset Portfolios

Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which 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