Is Hewlett Packard Enterprise Company (HPE) the worst blue chip stock to buy?
Recently I published the list Worst Blue Chip Stock to Buy. In this article, we’ll look at where the Hewlett Packard Enterprise Company (NYSE:HPE) fights against other worst blue chip stocks.
According to Niamh Brodie-Machura, co-chief investment officer at Fidelity International, the effects of tariffs are expected to decrease as the supply chain adapts once transactions are made. However, as the volatility increase continues, investors planning to add additional risk should be wary. The environment is an opportunity to better position your portfolio for resilience amidst uncertainty.
Contrary to expectations, BlackRock highlighted in a release dated April 23rd that international stocks surpassed US stocks by 11% in 2025. US growth stocks fell 10%, while US value stocks rose 2%. This transition shows a significant market rotation across geography and style as value stocks continue to gain favors over growth stocks. Within the US market, value stocks are on track, primarily in the defense sector, such as healthcare, says asset managers.
BlackRock also added that narrowing income gaps and attractive industry features such as innovation and growth in aging groups are driving performance. In particular, proactive management strategies are advantageous when navigating fluctuating markets.
BlackRock believes that US large-cap stocks are the only major US index to actively return YTD until March 31st. Within value stocks, the investor is finding opportunities for the defence sector. In the current rapidly moving political environment, value stocks, primarily new trade policies, can own additional tailwinds. This is due to the ability to earn more income from the US.
Elsewhere, if tariff debate continues for longer than expected, or if the average tariff rate differs from current expectations, it is important to change the portfolio accordingly, says the trustee’s trust (private asset management company). In particular, CAPEX spending on AI is expected to remain strong, and AI could drive long-term productivity. The company also said changes to the bank capital ratio rules could be made to enhance lending and increase stock buybacks. Both of these measures can improve revenue.
To list the 10 worst blue chip stocks to buy, we scanned our SPDR®S&P500®ETFTrust holdings and selected ones that were reduced between 15% and 30% on a YTD basis. After getting an expanded list of stocks, I chose a popular list among hedge funds. Finally, as of the fourth quarter of 2024, stocks were ranked in ascending order of hedge fund holdings.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (For more information, please see here).
Is Hewlett Packard Enterprise Company (HPE) the worst blue chip stock to buy?
Latest office female programmer using multiple computer servers.
Number of hedge fund holders: 66
Decrease on a YTD basis: ~21.4%
Hewlett Packard Enterprise Company (NYSE: HPE) is a supplier of IT infrastructure products and services. Bank of America Securities Analyst Wamsi Mohan maintained a “buy” rating for the company’s stock, setting a price target of $20.00. The analyst ratings are supported by several factors that demonstrate the value creation potential of the Hewlett Packard Enterprise Company (NYSE:HPE). Analysts believe that Elliott’s involvement in activist investors demonstrates belief in underestimating the company compared to their colleagues. In particular, Reuters reported that Elliott’s investment management has built more than $1.5 billion in stake in the company.
Hewlett Packard Enterprise Company (NYSE:HPE)’s investment in AI server liquid cooling technology provides a powerful opportunity for growth in the competitive AI hardware market. Traditional air-cooling solutions have reached limits due to the complexity and power intensive AI workloads. Therefore, liquid cooling offers many benefits that can drive the success of the Hewlett Packard Enterprise Company (NYSE:HPE). By managing heat more effectively, liquefaction systems have the ability to reduce energy consumption. This could reduce customer operating costs. Overall, the company continues to operate in a dynamic industry environment. The broader enterprise IT market continues to show signs of recovery with increased infrastructure spending and digital transformation initiatives. This trend can portend a good for the core business segment of the company.
Overall, HPE 8th place A list of the worst blue chip stocks to buy. While we acknowledge the potential as an investment in HPE, our conviction lies in the belief that some deeply undervalued AI stocks offer higher returns and hold a greater commitment to doing it within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for deep, undervalued AI stocks that are more promising than HPE, but trade less than five times the revenue, check out our report on this Cheapest AI stocks.
