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CSCO vs HPE
Which Stock Would AI Choose? Cisco Systems (CSCO) vs. Hewlett Packard Enterprise (HPE) Stock Comparison
Key Takeaways
- Cisco Systems (CSCO) has shifted from a slow-growth networking incumbent into a direct AI-infrastructure beneficiary, driven by accelerating hyperscaler and enterprise networking demand.
- Hewlett Packard Enterprise (HPE) delivered one of the strongest 2026 rallies in enterprise hardware, powered by record AI-server orders and the Juniper Networks integration.
- Both stocks trade in the same AI-infrastructure theme but occupy different segments: CSCO leans on high-margin networking and security, while HPE skews toward lower-margin, capital-intensive servers.
- Recent relative performance favors HPE on momentum, but analysts have begun flagging stretched valuation and thinner hardware margins.
- CSCO offers a broader recurring-revenue base and a more diversified profit mix, potentially supporting more stable sentiment.
Introduction
The artificial intelligence infrastructure boom has turned once-overlooked enterprise hardware vendors into some of the market's most-watched technology stocks. This comparison examines two of the largest names in that group: Cisco Systems, the networking and security giant, and Hewlett Packard Enterprise, a leading provider of servers, storage, and networking. Both companies compete for the same pool of AI-related capital spending, yet they approach it with different business models, margin profiles, and risk exposures. Traders and investors evaluating a stock comparison between these two names will find this analysis useful for understanding their relative performance, market positioning, and the trade-offs embedded in each company's current valuation.
CSCO Overview and Recent Performance
Cisco Systems is one of the world's largest providers of networking equipment, complemented by growing security, collaboration, and observability (monitoring and analytics) software businesses. In recent weeks, CSCO has maintained a strong upward trajectory, having risen roughly 68% over the trailing year and trading near levels not seen since its dot-com-era peaks.
The primary catalyst has been AI-driven networking demand. In its most recent fiscal quarter, Cisco reported total revenue up 18% year over year, with networking revenue climbing 28% as data-center switching and AI infrastructure accelerated. Hyperscaler AI-infrastructure orders reached about $9.3 billion for the fiscal year—approximately 4.5 times the prior-year level—while security revenue grew 14%. This broad-based order strength has supported the company's premium valuation, though gross margin has faced pressure from a higher hardware mix and memory costs. Sentiment remains generally constructive, with the analyst consensus near "Buy" and an average price target modestly above the current share price.
HPE Overview and Recent Performance
Hewlett Packard Enterprise supplies enterprise and cloud infrastructure, including AI-optimized servers, storage, and—following its acquisition of Juniper Networks—a substantially expanded networking business. HPE has been one of the standout performers of 2026, with shares up roughly 190% year to date at recent levels and trading near record highs.
The rally reflects accelerating AI-server orders. In its most recent quarter, revenue rose about 34% year over year to $12.2 billion, adjusted earnings per share (EPS) more than doubled, and total AI backlog reached a record $7.6 billion. Management raised its full-year outlook well above prior targets, citing broadened demand across inference and agentic AI workloads rather than just model training. The Juniper integration has also progressed ahead of plan. However, recent market activity has introduced caution: several brokerages have downgraded the stock, citing valuation that has outpaced fundamentals and concerns that commodity memory costs, rather than a durable enterprise AI inflection, are inflating reported revenue. Profit margins in the Cloud & AI segment, while improving, remain well below those of networking.
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Head-to-Head Comparison
Although both companies benefit from AI capital expenditure, their business models diverge meaningfully. CSCO derives much of its value from high-margin networking platforms, security software, and recurring subscription revenue, which historically supports steadier profitability and stronger cash conversion. HPE generates a larger share of revenue from servers—equipment that packages third-party accelerators such as Nvidia chips—an inherently higher-volume, lower-margin activity exposed to component pricing and supply constraints.
On growth momentum, HPE has posted faster top-line expansion, but a portion of that growth reflects the Juniper acquisition and rising memory prices rather than purely organic demand. CSCO is growing more modestly but from a broader, more diversified base. Risk profiles also differ: HPE carries elevated leverage and thin server margins, while CSCO faces gross-margin compression from hardware mix and component costs. From a sentiment standpoint, HPE has enjoyed sharper momentum but is now encountering valuation-related downgrades, whereas CSCO retains a steadier, if less explosive, profile.
Tickeron AI Verdict
Based on observable trend consistency, catalyst durability, and relative positioning, Tickeron's AI would likely view both names as exposed to the same powerful AI-infrastructure theme but with different risk-return characteristics. HPE currently displays stronger price momentum and faster revenue growth, which could appeal to a trend-following model; however, its recent volatility, thinner margins, and elevated valuation raise the probability of mean-reversion risk. CSCO offers a more diversified profit mix, a larger recurring-revenue base, and steadier sentiment, which may be favored by strategies emphasizing trend consistency and stability over raw momentum. On balance, the AI would lean toward CSCO for its relatively more balanced risk-adjusted positioning, while acknowledging that HPE may continue to outperform if AI-server demand sustains its current pace.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CSCO is a StrongBuy and HPE is a Hold.
CSCO in upward trend: 10-day moving average crossed above 50-day moving average on October 09, 2026
The 10-day moving average for CSCO crossed bullishly above the 50-day moving average on October 09, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 81%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +5.12% 3-day Advance, the price is estimated to grow further. Considering data from situations where CSCO advanced for three days, in 228 of 362 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
Bearish Trend Analysis
The 10-day RSI Indicator for CSCO moved out of overbought territory on October 08, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In 17 of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at 37%.
The Momentum Indicator moved below the 0 level on October 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CSCO as a result. In 29 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 34%.
The Moving Average Convergence Divergence Histogram (MACD) for CSCO turned negative on October 16, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 17 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 34%.
CSCO moved below its 50-day moving average on October 15, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CSCO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 42%.
CSCO broke above its upper Bollinger Band on October 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for CSCO entered a downward trend on October 01, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 13 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 25 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 35 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating steady price growth. CSCO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.350) is normal, around the industry mean (7.128). P/E Ratio (31.696) is within average values for comparable stocks, (5.011). Projected Growth (PEG Ratio) (0.984) is also within normal values, averaging (0.778). Dividend Yield (0.016) settles around the average of (0.136) among similar stocks. P/S Ratio (6.784) is also within normal values, averaging (11.937).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
HPE in downward trend: price dove below 50-day moving average on October 15, 2026
HPE moved below its 50-day moving average on October 15, 2026 date and that indicates a change from an upward trend to a downward trend. In 29 of 37 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 78%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for HPE moved out of overbought territory on October 12, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In 22 of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at 54%.
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HPE as a result. In 57 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 69%.
The Moving Average Convergence Divergence Histogram (MACD) for HPE turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 32 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HPE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 62%.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +5.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where HPE advanced for three days, in 256 of 344 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
HPE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 208 of 272 cases where HPE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 76%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 15 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 35 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 39 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating steady price growth. HPE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 56 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.797) is normal, around the industry mean (7.128). P/E Ratio (27.796) is within average values for comparable stocks, (5.011). Projected Growth (PEG Ratio) (0.500) is also within normal values, averaging (0.778). Dividend Yield (0.010) settles around the average of (0.136) among similar stocks. P/S Ratio (1.914) is also within normal values, averaging (11.937).
The Tickeron SMR rating for this company is 68 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
CSCO | HPE | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 80 | 81 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 56 Fair valued | |
PROFIT vs RISK RATING 1..100 | 13 | 15 | |
SMR RATING 1..100 | 35 | 68 | |
PRICE GROWTH RATING 1..100 | 43 | 50 | |
P/E GROWTH RATING 1..100 | 25 | 35 | |
SEASONALITY SCORE 1..100 | 75 | 39 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
HPE's Valuation (56) in the Computer Processing Hardware industry is in the same range as CSCO (71) in the Computer Communications industry. This means that HPE’s stock grew similarly to CSCO’s over the last 12 months.
CSCO's Profit vs Risk Rating (13) in the Computer Communications industry is in the same range as HPE (15) in the Computer Processing Hardware industry. This means that CSCO’s stock grew similarly to HPE’s over the last 12 months.
CSCO's SMR Rating (35) in the Computer Communications industry is somewhat better than the same rating for HPE (68) in the Computer Processing Hardware industry. This means that CSCO’s stock grew somewhat faster than HPE’s over the last 12 months.
CSCO's Price Growth Rating (43) in the Computer Communications industry is in the same range as HPE (50) in the Computer Processing Hardware industry. This means that CSCO’s stock grew similarly to HPE’s over the last 12 months.
CSCO's P/E Growth Rating (25) in the Computer Communications industry is in the same range as HPE (35) in the Computer Processing Hardware industry. This means that CSCO’s stock grew similarly to HPE’s over the last 12 months.
| CSCO | HPE | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 37% | 1 day ago 54% |
| Stochastic ODDS (%) | 1 day ago 60% | 1 day ago 72% |
| Momentum ODDS (%) | 1 day ago 34% | 1 day ago 69% |
| MACD ODDS (%) | 1 day ago 34% | 1 day ago 67% |
| TrendWeek ODDS (%) | 1 day ago 40% | 1 day ago 61% |
| TrendMonth ODDS (%) | 1 day ago 45% | 1 day ago 63% |
| Advances ODDS (%) | 15 days ago 63% | 14 days ago 74% |
| Declines ODDS (%) | 1 day ago 42% | 5 days ago 62% |
| BollingerBands ODDS (%) | 1 day ago 38% | 1 day ago 77% |
| Aroon ODDS (%) | 1 day ago 45% | 1 day ago 76% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CSCO’s FA Score shows that 2 FA rating(s) are green while HPE’s FA Score has 1 green FA rating(s).
- CSCO’s FA Score: 2 green, 3 red.
- HPE’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CSCO’s TA Score shows that 3 TA indicator(s) are bullish while HPE’s TA Score has 4 bullish TA indicator(s).
- CSCO’s TA Score: 3 bullish, 7 bearish.
- HPE’s TA Score: 4 bullish, 5 bearish.
Price Growth
CSCO (@Telecommunications Equipment) experienced а -7.66% price change this week, while HPE (@Telecommunications Equipment) price change was -20.56% for the same time period.
The average weekly price growth across all stocks in the @Telecommunications Equipment industry was -7.22%. For the same industry, the average monthly price growth was -10.11%, and the average quarterly price growth was -13.42%.
Reported Earning Dates
CSCO is expected to report earnings on Nov 18, 2026.
HPE is expected to report earnings on Dec 03, 2026.
Industries' Descriptions
@Telecommunications Equipment (-7.22% weekly)The Telecommunications Equipment industry produces voice and data communications equipment, which includes fiber optic delivery products, digital signal processors, high-speed voice, data and video delivery. Additionally, satellite systems, global positioning systems, wireless data systems, personal communications equipment, telephone handsets and payload equipment for satellites also fall into this category. Apple Inc., QUALCOMM Incorporated and Nokia are major global players in this segment.
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CSCO and
Correlation & Price change
A.I.dvisor indicates that over the last year, CSCO has been loosely correlated with HPE. These tickers have moved in lockstep 51% of the time. This A.I.-generated data suggests there is some statistical probability that if CSCO jumps, then HPE could also see price increases.
| Ticker / NAME | Correlation To CSCO | 1D Price Change % | ||
|---|---|---|---|---|
| CSCO | 100% | -0.83% | ||
| HPE - CSCO | 51% Loosely correlated | +1.34% | ||
| EXTR - CSCO | 50% Loosely correlated | +0.83% | ||
| ITRN - CSCO | 42% Loosely correlated | +1.11% | ||
| NOK - CSCO | 38% Loosely correlated | -0.66% | ||
| VIAV - CSCO | 38% Loosely correlated | +4.79% | ||
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HPE and
Correlation & Price change
A.I.dvisor indicates that over the last year, HPE has been loosely correlated with CSCO. These tickers have moved in lockstep 52% of the time. This A.I.-generated data suggests there is some statistical probability that if HPE jumps, then CSCO could also see price increases.
| Ticker / NAME | Correlation To HPE | 1D Price Change % | ||
|---|---|---|---|---|
| HPE | 100% | +1.34% | ||
| CSCO - HPE | 52% Loosely correlated | -0.83% | ||
| NOK - HPE | 48% Loosely correlated | -0.66% | ||
| CRNT - HPE | 47% Loosely correlated | -1.47% | ||
| NTGR - HPE | 45% Loosely correlated | +3.22% | ||
| CIEN - HPE | 43% Loosely correlated | +3.45% | ||
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