Hewlett Packard Enterprise (NYSE:HPE) stock rose Wednesday in sympathy with Dell Technologies Inc. (NYSE:DELL) after the peer reported strong second-quarter results. However, HPE later erased those gains and was trading lower.
Dell reported adjusted earnings of $7.04 per share. That beat the consensus estimate of $4.91. Revenue of $46.97 billion also topped the Street estimate of $44.95 billion.
Earnings Due Wednesday
Hewlett Packard Enterprise will report its fiscal third-quarter results after Wednesday’s closing bell.
Analysts expect earnings of 93 cents per share, up from 44 cents a year earlier. They project revenue of $11.94 billion, compared with $9.14 billion in the year-ago quarter.
The stock has a Buy rating and an average price forecast of $69.47.
Deutsche Bank initiated coverage with a Buy rating and a $62 price forecast on Sept. 1. Bank of America Securities maintained its Buy rating and raised its forecast to $82 on Aug. 31. Morgan Stanley upgraded HPE to Overweight but lowered its forecast to $69 on Aug. 10.
Hewlett Packard Expands Tottenham Hotspur Partnership
Separately, Hewlett Packard and Tottenham Hotspur said Wednesday that they expanded their partnership to modernize the club’s stadium technology.
HPE will upgrade systems that support ticketless entry, cashless payments, mobile apps and digital navigation. The project will consolidate eight technology locations into two core environments.
Tottenham will also deploy outdoor Wi-Fi 7 and use artificial intelligence to monitor network performance, automate operations and address technical issues. HPE will provide financing, deployment and ongoing operational support.
Technical Analysis
HPE’s longer-term uptrend remains intact. The stock trades 1.4% above its 50-day simple moving average of $49.76. It is also 16.6% above its 100-day average of $43.26 and 53.1% above its 200-day average of $32.94.
However, HPE trades 7.1% below its 20-day average of $54.31. That signals weaker momentum in the near term.
The moving average convergence divergence indicator is also bearish. The MACD remains below its signal line, while the histogram is negative. Both signals suggest buying momentum has faded.
Still, the broader technical setup favors bulls. The 20-day average remains above the 50-day average. In addition, the 50-day average remains above the 200-day average following an April golden cross.
Resistance sits near $51. Support stands near $43.50, close to the stock’s 100-day moving average.
Fund Exposure
The Nuveen ESG Mid-Cap Value ETF (BATS) has a 3.48% weighting in HPE. The Bancroft Fund Ltd. (NYSEAMERICAN) has a 2.66% weighting, while the Adaptiv Select ETF (NYSEARCA) has a 5.72% weighting.
Flows into or out of these funds could lead to additional buying or selling of HPE shares.
HPE Stock Price Activity: Hewlett Packard shares were down 1.22% at $50.25 at the time of publication on Wednesday, according to Benzinga Pro data.
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