10 Best Affordable Stocks Under $20 to Buy

2. Hewlett Packard Enterprise Company (NYSE:HPE)

Stock Price: $17.92

Forward P/E: 10.01

Number of Hedge Fund Holders: 66

Hewlett Packard Enterprise Company (NYSE:HPE) is a global global edge-to-cloud company that delivers open and intelligent technology solutions as a service. The company offers compute, cloud services, intelligent edge, high performance computing & artificial intelligence, software, and storage. Its operations are divided into the Server, Hybrid Cloud, Intelligent Edge, Financial Services, and Corporate Investments and Other segments.

Hewlett Packard Enterprise Company (NYSE:HPE) is the second-best affordable stock under $20 to buy on our list. On April 16, Bank of America Securities analyst Wamsi Mohan maintained a Buy rating on the stock, setting a price target of $20.00. The analyst highlighted the company’s value creation potential, claiming that the valuation on a sum-of-the-parts basis is especially attractive. Aruba alone represents a considerable portion of the enterprise value.

Mohan also opined that the involvement of activist investor Elliott Management, which holds a significant stake in the company, points to a belief in Hewlett Packard Enterprise Company’s (NYSE:HPE) undervaluation compared to its peers like Dell.

The analyst also highlighted that there are opportunities for operational improvements in the company, especially after last quarter’s performance issues.