Here's the Reason Hewlett Packard Enterprise (HPE) Stands Out as a Robust Growth Stock

Maximizing Your Stock Market Potential with Zacks Premium

Whether you're just starting out or have years of experience, making the most of your investments and trading with assurance are shared ambitions. Zacks Premium offers a variety of resources to help you achieve these objectives.

This renowned investment research platform equips you with tools to become a more knowledgeable and confident investor. Subscribers receive daily updates on the Zacks Rank and Industry Rank, access to the exclusive Zacks #1 Rank List, comprehensive equity research reports, and advanced stock screening features.

Among its many features, Zacks Premium provides access to the Zacks Style Scores.

Understanding Zacks Style Scores

The Zacks Style Scores are a proprietary rating system designed to evaluate stocks based on three widely used investment strategies. Developed to complement the Zacks Rank, these scores help investors identify stocks with the greatest potential to outperform the market in the coming month.

Each stock receives a grade—A, B, C, D, or F—based on its value, growth, and momentum attributes. Higher grades indicate a stronger likelihood of outperformance, with A being the highest and F the lowest.

The Style Scores are divided into four main categories:

Value Score

Value investors seek out quality stocks trading below their intrinsic worth, often before the broader market recognizes their potential. The Value Score assesses stocks using metrics such as price-to-earnings, PEG, price-to-sales, and price-to-cash flow ratios, highlighting those that are attractively priced and undervalued.

Growth Score

For those focused on a company's future prospects and financial strength, the Growth Score analyzes factors like projected and historical earnings, revenue, and cash flow. This score helps pinpoint companies poised for sustained expansion.

Momentum Score

Momentum investors capitalize on prevailing trends in stock prices or earnings forecasts. The Momentum Score evaluates factors such as short-term price changes and recent shifts in earnings estimates, assisting investors in identifying optimal moments to invest in high-momentum stocks.

VGM Score

If you prefer a blended approach, the VGM Score combines value, growth, and momentum metrics into a single rating. This comprehensive score, used alongside the Zacks Rank, helps narrow down stocks that excel across all three investment styles.

Integrating Style Scores with the Zacks Rank

The Zacks Rank is a unique stock rating model that leverages changes in earnings estimates to guide investors toward building successful portfolios.

Historically, stocks rated #1 (Strong Buy) by Zacks have delivered an impressive average annual return of +23.93% since 1988, more than twice the performance of the S&P 500. However, with over 200 companies holding a Strong Buy rating and another 600 rated as #2 (Buy) at any time, narrowing down your choices can be daunting.

This is where the Style Scores prove invaluable.

To maximize your investment returns, focus on stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B. These combinations offer the highest probability of success. If considering stocks with a #3 (Hold) rating, prioritize those with top Style Scores to maintain strong upside potential.

Since Style Scores are designed to work in tandem with the Zacks Rank, it's crucial to pay attention to the direction of earnings estimate revisions when selecting stocks.

For example, even if a stock with a #4 (Sell) or #5 (Strong Sell) rating has high Style Scores, a negative trend in earnings estimates suggests a higher risk of price decline.

In summary, holding more stocks with a #1 or #2 Rank and A or B Style Scores increases your chances of achieving superior returns.

Featured Stock: Hewlett Packard Enterprise (HPE)

Based in Spring, Texas, Hewlett Packard Enterprise was established following the division of Hewlett-Packard into two separate companies—one dedicated to enterprise hardware and services, and the other to consumer computers and printers.

Currently, HPE holds a #3 (Hold) Zacks Rank and boasts an A rating for its VGM Score.

The company is also appealing to growth-oriented investors. HPE has earned a B for its Growth Style Score, with analysts projecting a 24.7% increase in earnings for the current fiscal year.

Looking ahead to fiscal 2026, six analysts have raised their earnings forecasts in the past two months, pushing the Zacks Consensus Estimate up by $0.06 to $2.42 per share. HPE has also consistently exceeded expectations, with an average earnings surprise of +7.3%.

With a strong combination of Zacks Rank and high Growth and VGM Style Scores, HPE deserves a spot on investors' watchlists.

Top Analyst's "Best Pick to Double"

Out of thousands of stocks, five Zacks analysts have each selected their top choice expected to potentially double in the coming months. From these, Director of Research Sheraz Mian has singled out one stock with the greatest potential for explosive growth.

This company, which caters to millennial and Gen Z consumers, generated nearly $1 billion in revenue last quarter. A recent dip in its share price could present an excellent entry point. While not all top picks achieve such results, this stock could outperform previous Zacks selections like Nano-X Imaging, which soared +129.6% in just over nine months.