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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 delivered double-digit revenue and earnings growth in its most recent quarter, driven by AI-related networking demand and operational efficiencies.
- HPE has exhibited stronger year-to-date and recent momentum, benefiting from AI server infrastructure trends and positive sector sentiment.
- Both companies operate in the enterprise technology and networking space, with exposure to artificial intelligence infrastructure as a key growth driver.
- CSCO offers greater scale and stability, while HPE provides higher relative performance in the current market environment.
- Market sentiment for both stocks has improved amid broader AI enthusiasm, though valuation and execution risks differ between the two.
- Relative positioning favors HPE for short-term trend consistency, while CSCO emphasizes long-term resilience and margin expansion.
Introduction
This comparison examines CSCO and HPE, two established players in enterprise networking and IT infrastructure. Both companies stand to benefit from accelerating demand for artificial intelligence solutions, yet they differ in scale, business focus, and recent market dynamics. The analysis targets institutional and retail investors seeking to understand relative performance, growth drivers, and risk profiles in the current technology sector environment. Traders monitoring momentum shifts and long-term positioning may find the side-by-side evaluation particularly relevant for portfolio allocation decisions.
CSCO Overview and Recent Performance
Cisco Systems provides networking hardware, software, and services to enterprises worldwide. In recent market activity, the stock responded positively to quarterly results that exceeded expectations, with revenue rising 12% year-over-year and non-GAAP earnings per share advancing 10%. Strong AI order momentum and gross margin expansion supported sentiment, contributing to solid year-to-date gains exceeding 50%. The company maintains a substantial installed base and recurring services revenue, which lends stability during periods of broader market volatility. Recent weeks have highlighted operational discipline and guidance that reinforced investor confidence in its AI infrastructure positioning.
HPE Overview and Recent Performance
Hewlett Packard Enterprise focuses on servers, storage, and networking solutions tailored for data centers and edge computing. Recent market activity has shown pronounced strength, with the shares advancing sharply on sector-wide AI enthusiasm and favorable comparisons to peers. Year-to-date returns have outpaced broader benchmarks, reflecting robust demand for high-performance computing hardware. The company continues to emphasize AI-optimized offerings, which have aligned with improving customer spending patterns. Performance in recent weeks underscores momentum in its core infrastructure segments, supported by an expanding backlog and positive industry tailwinds.
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Head-to-Head Comparison
CSCO and HPE both supply critical components for enterprise networks and data centers, yet their business models diverge in emphasis. CSCO benefits from a larger services and software footprint that generates more predictable revenue streams, while HPE derives greater exposure from hardware sales tied to server refresh cycles. Growth drivers center on artificial intelligence for both, though HPE has captured more immediate momentum from server demand. Recent relative performance favors HPE on a year-to-date basis, reflecting stronger price appreciation amid sector rotation. Risk factors include supply chain dependencies and competition; CSCO faces integration challenges from acquisitions, whereas HPE contends with higher cyclicality in hardware margins. Market sentiment remains constructive for both, supported by AI capital expenditures, but valuation multiples and dividend yields present different trade-offs for income-oriented versus growth-focused investors.
Tickeron AI Verdict
Tickeron’s AI models indicate a modest probabilistic preference for HPE in the near term, citing more consistent upward price trends, elevated relative returns, and alignment with AI infrastructure catalysts observed in recent market activity. CSCO demonstrates greater stability and scale advantages that could support outperformance over longer horizons. The assessment rests on observable factors including trend persistence and sector positioning rather than guarantees of future results.
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 Hold and HPE is a Hold.
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 undervalued. 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 3 FA rating(s) are green whileHPE’s FA Score has 3 green FA rating(s).
- CSCO’s FA Score: 3 green, 2 red.
- HPE’s FA Score: 3 green, 2 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 2 TA indicator(s) are bullish while HPE’s TA Score has 2 bullish TA indicator(s).
- CSCO’s TA Score: 2 bullish, 6 bearish.
- HPE’s TA Score: 2 bullish, 4 bearish.
Price Growth
CSCO (@Telecommunications Equipment) experienced а -6.09% price change this week, while HPE (@Telecommunications Equipment) price change was -17.52% for the same time period.
The average weekly price growth across all stocks in the @Telecommunications Equipment industry was -5.21%. For the same industry, the average monthly price growth was +3.82%, and the average quarterly price growth was +58.01%.
Reported Earning Dates
CSCO is expected to report earnings on Aug 19, 2026.
HPE is expected to report earnings on Sep 01, 2026.
Industries' Descriptions
@Telecommunications Equipment (-5.21% 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.
| CSCO | HPE | CSCO / HPE | |
| Capitalization | 468B | 60.2B | 777% |
| EBITDA | 18.1B | 5.56B | 325% |
| Gain YTD | 55.891 | 90.601 | 62% |
| P/E Ratio | 39.60 | 42.51 | 93% |
| Revenue | 60.7B | 38.8B | 156% |
| Total Cash | 16.6B | 5.29B | 314% |
| Total Debt | 31.3B | 21.2B | 148% |
CSCO | HPE | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 93 | 93 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 59 Fair valued | 39 Fair valued | |
PROFIT vs RISK RATING 1..100 | 6 | 10 | |
SMR RATING 1..100 | 38 | 100 | |
PRICE GROWTH RATING 1..100 | 4 | 2 | |
P/E GROWTH RATING 1..100 | 19 | 6 | |
SEASONALITY SCORE 1..100 | 50 | 25 |
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 (39) in the Computer Processing Hardware industry is in the same range as CSCO (59) 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 (6) in the Computer Communications industry is in the same range as HPE (10) 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 (38) in the Computer Communications industry is somewhat better than the same rating for HPE (100) 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 (2) in the Computer Processing Hardware industry is in the same range as CSCO (4) in the Computer Communications industry. This means that HPE’s stock grew similarly to CSCO’s over the last 12 months.
HPE's P/E Growth Rating (6) in the Computer Processing Hardware industry is in the same range as CSCO (19) in the Computer Communications industry. This means that HPE’s stock grew similarly to CSCO’s over the last 12 months.
| CSCO | HPE | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 50% | 2 days ago 53% |
| Stochastic ODDS (%) | 1 day ago 35% | 2 days ago 70% |
| Momentum ODDS (%) | 1 day ago 36% | N/A |
| MACD ODDS (%) | 1 day ago 32% | N/A |
| TrendWeek ODDS (%) | 1 day ago 37% | 2 days ago 61% |
| TrendMonth ODDS (%) | 1 day ago 65% | 2 days ago 71% |
| Advances ODDS (%) | 9 days ago 62% | 9 days ago 73% |
| Declines ODDS (%) | 1 day ago 40% | 6 days ago 62% |
| BollingerBands ODDS (%) | 1 day ago 44% | 2 days ago 61% |
| Aroon ODDS (%) | 1 day ago 64% | 2 days ago 73% |
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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 49% 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% | -5.76% | ||
| CSCO - HPE | 49% Loosely correlated | -1.30% | ||
| ITRN - HPE | 42% Loosely correlated | -0.46% | ||
| NTGR - HPE | 41% Loosely correlated | -0.95% | ||
| EXTR - HPE | 41% Loosely correlated | -0.52% | ||
| CRNT - HPE | 41% Loosely correlated | -2.92% | ||
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