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CSCO vs HPE
Which Stock Would AI Choose? Cisco Systems (CSCO) vs. Hewlett Packard Enterprise (HPE) Stock Comparison
Key Takeaways
- CSCO offers a steadier, dividend-backed profile with strong AI networking orders, but its recent momentum has cooled amid a Wall Street downgrade and gross-margin pressure.
- HPE has delivered far stronger relative performance, with accelerating revenue growth, record orders and backlog, and a higher beta (a measure of volatility relative to the market).
- Both companies are leveraged to the same AI-infrastructure spending cycle, but they monetize it differently: CSCO through networking and software, and HPE through servers, storage, and networking.
- Tickeron AI Verdict: HPE currently screens as the favored ticker on trend strength and catalysts, though it carries materially higher volatility than CSCO.
- For deeper coverage, explore CSCO Major News, CSCO Today's Price Move, HPE Major News, and HPE Today's Price Move.
- To see how automated systems are positioning across the market, explore Trending AI Robots.
Introduction
Cisco Systems and Hewlett Packard Enterprise are two of the largest enterprise-technology providers vying for a share of the same AI-infrastructure opportunity, yet they sit in very different parts of the value chain. This stock comparison is relevant for investors and traders weighing a steadier, income-oriented networking giant against a faster-growing, higher-volatility server and networking challenger. Because both names are heavily exposed to data-center and AI-driven capital spending, their relative performance offers a useful lens on how the market is pricing durability versus momentum. The sections below compare their business models, recent price behavior, and market positioning to help readers evaluate which profile better fits the current environment.
CSCO Overview and Recent Performance
Cisco Systems is a global leader in networking hardware, security, and collaboration software, with a growing emphasis on AI-enabled networking and observability through its Splunk business. The company ended fiscal 2026 with roughly $63.3 billion in revenue, up about 12% year over year, and reported fourth-quarter revenue growth near 18%. AI infrastructure orders reached approximately $9.3 billion for the year, with management raising its order outlook meaningfully during the period.
Despite these fundamentals, CSCO has experienced a cooling in sentiment in recent weeks. After a strong run earlier in the year, the stock pulled back from its 52-week high, and a well-followed brokerage downgraded the name to an equal-weight rating, trimming its price target on concerns about a higher bar for upside and thinner margins from hardware-heavy AI sales. Gross margin has been pressured by rising memory costs and a shift toward lower-margin AI infrastructure. Cisco remains a relatively defensive holding, with a dividend yield near 1.6% and a beta below 1, but its recent market positioning reflects a more cautious near-term outlook.
HPE Overview and Recent Performance
Hewlett Packard Enterprise provides compute servers, storage, networking, and hybrid-cloud services, positioning itself as an edge-to-cloud company. Its acquisition of Juniper Networks has strengthened its networking portfolio, and the company has leaned heavily into AI systems, including a $1.2 billion order from cloud provider Vultr and a $3.5 billion inferencing deal with a hyperscaler customer. In its most recent fiscal quarter, HPE reported revenue of about $12.2 billion, up 34% year over year, with earnings and revenue exceeding analyst expectations and management raising full-year guidance.
This growth has been reflected in a substantial share-price advance, with HPE up well over 100% year to date at recent highs. That momentum, however, has come with outsized volatility: the stock has a beta above 1.3 and recently underwent a sharp double-digit pullback from its peak. Supply constraints in memory components (including DDR5 and DDR4) and expected margin normalization as AI systems grow as a share of the mix are key risk factors. Still, record orders and backlog underscore broad demand across servers, networking, and AI infrastructure.
Trending AI Robots
Tickeron maintains a large library of AI trading bots that collectively trade thousands of different tickers, each with its own trading style, strategy, timeframe, performance statistics, and set of securities. Because only a subset of these bots is well suited to current market conditions at any given moment, Tickeron curates the strongest performers into a dedicated section called Trending AI Robots. This curated view highlights automated systems whose signals align with present-day trends and volatility, giving traders a way to scan for data-driven ideas without sifting through the full catalog. The selection process emphasizes bots that have demonstrated suitability for prevailing conditions rather than raw popularity. Readers interested in how automated strategies are positioning across the market can explore the Trending AI Robots page to review the currently featured bots and their statistics.
Head-to-Head Comparison
The two companies diverge most clearly on growth profile and risk. HPE has delivered markedly faster revenue growth and stronger recent momentum, driven by AI systems and a revitalized networking business, but it trades with higher beta and thinner operating margins. CSCO generates higher and more consistent profitability, carries a lower beta, and pays a larger dividend, but its growth is more measured and its recent sentiment has been dampened by margin concerns and a ratings downgrade.
On sector exposure, both companies are tied to enterprise and data-center spending, yet CSCO skews toward networking, security, and software, while HPE skews toward compute, storage, and integrated AI systems. Growth drivers differ accordingly: Cisco's catalysts center on AI networking orders and recurring software, whereas HPE's catalysts center on AI server demand, backlog conversion, and Juniper integration synergies. The trade-off, in short, is stability and income versus momentum and volatility.
Tickeron AI Verdict
Based on observable factors such as trend consistency, catalyst momentum, and relative positioning, Tickeron's AI would likely favor HPE over CSCO in the current environment. The stronger and more durable uptrend, accelerating revenue growth, record backlog, and multiple recent design wins give HPE a clearer momentum profile, while CSCO currently faces a higher bar for positive surprises following its recent downgrade. This preference is probabilistic rather than definitive: HPE's elevated beta and sharp pullbacks mean the same catalysts that support its trend also introduce greater downside risk. Traders and investors should weigh that volatility against the relative strength of the underlying demand signals.
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 Buy and HPE is a Hold.
CSCO in upward trend: price may ascend as a result of having broken its lower Bollinger Band on November 05, 2026
CSCO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 19 of 30 cases where CSCO's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 63%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CSCO's RSI Oscillator exited the oversold zone, 13 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where CSCO advanced for three days, in 227 of 359 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
Bearish Trend Analysis
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 38 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 45%.
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 22 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 44%.
CSCO moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CSCO crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 53%.
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 41%.
The Aroon Indicator for CSCO entered a downward trend on November 09, 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 30 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
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 PE Growth Rating for this company is 47 (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 50 (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 61 (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 69 (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 (7.358) is normal, around the industry mean (5.210). P/E Ratio (27.932) is within average values for comparable stocks, (3.688). Projected Growth (PEG Ratio) (0.984) is also within normal values, averaging (0.778). Dividend Yield (0.018) settles around the average of (0.067) among similar stocks. P/S Ratio (6.784) is also within normal values, averaging (11.937).
HPE's RSI Indicator ascends from oversold territory
The RSI Indicator for HPE moved out of oversold territory on November 09, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 23 similar instances when the indicator left oversold territory. In 21 of the 23 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +7.65% 3-day Advance, the price is estimated to grow further. Considering data from situations where HPE advanced for three days, in 257 of 344 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
HPE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HPE as a result. In 54 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 66%.
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 31 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
HPE moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for HPE crossed bearishly below the 50-day moving average on October 26, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 69%.
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 63%.
The Aroon Indicator for HPE entered a downward trend on November 09, 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 38 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron Seasonality Score of 38 (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 Valuation Rating of 54 (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 (2.241) is normal, around the industry mean (5.210). P/E Ratio (22.274) is within average values for comparable stocks, (3.688). Projected Growth (PEG Ratio) (0.500) is also within normal values, averaging (0.778). Dividend Yield (0.013) settles around the average of (0.067) among similar stocks. P/S Ratio (1.914) is also within normal values, averaging (11.937).
The Tickeron Price Growth Rating for this company is 56 (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 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.
The Tickeron PE Growth Rating for this company is 72 (best 1 - 100 worst), pointing to worse than average 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.
CSCO | HPE | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 73 | 65 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 69 Overvalued | 54 Fair valued | |
PROFIT vs RISK RATING 1..100 | 30 | 38 | |
SMR RATING 1..100 | 35 | 68 | |
PRICE GROWTH RATING 1..100 | 61 | 56 | |
P/E GROWTH RATING 1..100 | 47 | 72 | |
SEASONALITY SCORE 1..100 | 50 | 38 |
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 (54) in the Computer Processing Hardware industry is in the same range as CSCO (69) 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 (30) in the Computer Communications industry is in the same range as HPE (38) 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.
HPE's Price Growth Rating (56) in the Computer Processing Hardware industry is in the same range as CSCO (61) in the Computer Communications industry. This means that HPE’s stock grew similarly to CSCO’s over the last 12 months.
CSCO's P/E Growth Rating (47) in the Computer Communications industry is in the same range as HPE (72) 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 62% | 1 day ago 90% |
| Stochastic ODDS (%) | 1 day ago 54% | 1 day ago 79% |
| Momentum ODDS (%) | 1 day ago 45% | 1 day ago 66% |
| MACD ODDS (%) | 1 day ago 44% | 1 day ago 65% |
| TrendWeek ODDS (%) | 1 day ago 39% | 1 day ago 61% |
| TrendMonth ODDS (%) | 1 day ago 45% | 1 day ago 63% |
| Advances ODDS (%) | 6 days ago 63% | 1 day ago 75% |
| Declines ODDS (%) | 4 days ago 41% | 5 days ago 63% |
| BollingerBands ODDS (%) | 1 day ago 63% | 1 day ago 74% |
| Aroon ODDS (%) | 1 day ago 47% | 1 day ago 51% |
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 1 FA rating(s) are green while HPE’s FA Score has 0 green FA rating(s).
- CSCO’s FA Score: 1 green, 4 red.
- HPE’s FA Score: 0 green, 5 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 4 TA indicator(s) are bullish while HPE’s TA Score has 4 bullish TA indicator(s).
- CSCO’s TA Score: 4 bullish, 6 bearish.
- HPE’s TA Score: 4 bullish, 6 bearish.
Price Growth
CSCO (@Telecommunications Equipment) experienced а -10.20% price change this week, while HPE (@Telecommunications Equipment) price change was -7.13% for the same time period.
The average weekly price growth across all stocks in the @Telecommunications Equipment industry was -3.06%. For the same industry, the average monthly price growth was -14.35%, and the average quarterly price growth was -21.72%.
Reported Earning Dates
CSCO is expected to report earnings on Nov 12, 2026.
HPE is expected to report earnings on Nov 23, 2026.
Industries' Descriptions
@Telecommunications Equipment (-3.06% 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 54% 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% | +5.11% | ||
| HPE - CSCO | 54% Loosely correlated | +6.19% | ||
| EXTR - CSCO | 51% Loosely correlated | +6.53% | ||
| NOK - CSCO | 43% Loosely correlated | +6.79% | ||
| VIAV - CSCO | 42% Loosely correlated | +12.33% | ||
| ITRN - CSCO | 42% Loosely correlated | +4.14% | ||
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HPE and
Correlation & Price change
A.I.dvisor indicates that over the last year, HPE has been loosely correlated with NOK. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if HPE jumps, then NOK could also see price increases.
| Ticker / NAME | Correlation To HPE | 1D Price Change % | ||
|---|---|---|---|---|
| HPE | 100% | +6.19% | ||
| NOK - HPE | 56% Loosely correlated | +6.79% | ||
| CSCO - HPE | 56% Loosely correlated | +5.11% | ||
| CIEN - HPE | 51% Loosely correlated | +10.66% | ||
| NTGR - HPE | 49% Loosely correlated | +6.57% | ||
| SILC - HPE | 48% Loosely correlated | +9.48% | ||
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