Hewlett Packard Enterprise
Enterprise-level hardware and software maker Hewlett Packard Enterprise Co. (NYSE: HPE) has seen its share price decline by about 2% over the past 12 months. The dip came primarily in the first two months of 2023, while most other tech companies were seeing shares rise. HPE has gone almost totally into the xxx-as-a-service business with “xxx” standing in for high-performance computing, edge computing, or just about any other service one could name. This should help boost margins, provided supply chain or cost issues do not interfere.
Analyst sentiment is slightly bullish on the stock, with nine of 22 brokerages having a Buy or Strong Buy rating and another 11 with Hold ratings. At a share price of around $15.60, the upside potential based on a median price target of $18.00 is 15.4%. At the high target of $20.00, the upside potential is 28.2%.
For the company’s first quarter of fiscal 2023, analysts expect to see revenue of $7.4 billion, down 6% sequentially but up 6.3% year over year. Adjusted EPS are forecast at $0.53, down 6.1% sequentially and flat year over year. For the fiscal year ending in October, analysts are looking for adjusted EPS of $2.02, up 0.2%, on sales of $29.11 billion, up about 2.2%.
The stock trades at a multiple of 7.7 times expected 2023 EPS, 7.2 times estimated 2024 earnings of $2.16 and 6.7 times estimated 2024 earnings of $2.35 per share. The stock’s 52-week range is $11.90 to $17.66, and the company pays an annual dividend of $0.48 (yield of 3.07%). Total shareholder return over the past year is 1.24%.
Chipmaker Marvell Technology Inc. (NASDAQ: MRVL) has seen its share price drop by 34% over the past 12 months. Since posting a 52-week high 11 months ago, the stock had dropped by 41%. The turnaround in tech stocks since the beginning of the year has added nearly 22% to Marvell’s share price. The company’s custom chip products, including Arm-based server products, could produce double-digit growth this year and for a number of quarters ahead.
Analysts remain solidly bullish on the stock. Of 32 brokerages covering Marvell, 29 have a Buy or Strong Buy rating and the rest rate it at Hold. At a price of around $45.00 a share, the upside potential to a median price target of $57.00 is 26.7%. At the high price target of $125.00, the upside potential is almost 178%.
For its fourth quarter of fiscal 2023 that ended in January, Marvell’s revenue is forecast to come in at $1.41 billion. That would be down 8.4% sequentially but up 5.2% year over year. Adjusted EPS are forecast at $0.47, down 17.8% sequentially and by 6.0% year over year. For the full fiscal year, EPS are forecast at $2.10, up 33.7%, on sales of $5.91 billion, up 32.5%.
The stock trades at 21.5 times expected 2023 EPS, 22.1 times estimated 2024 earnings of $2.10 and 15.9 times estimated 2025 earnings of $2.05 per share. Its 52-week range is $33.75 to $76.59, and Marvell pays an annual dividend of $0.24 (yield of 0.54%). Total shareholder return for the past year was negative 33.18%.
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