G-255 Earnings Summary with Trading Indicators for Digest - HPE December 4, 2025
Key Takeaway - As business slows, some large cap debt issuers are using cash flow to reduce balance sheet.
Despite several earnings "adjustments" and asset write-downs Kroger and Hewlett Packard Enterprises reduced balance sheet while still increasing returns to shareholders in their most recent quarters.
HPE Management guidance "disappointed" but it does not appear that HPE equity will get cheap enough to today to where it trades to the Equity trading model attractive level.
HPE Credit now seen as a long trade indicator from the trading model.
Kroger's lack of same store sales growth and management transition is a bit of a different story from HPE.
That said, the company paid off $ 6 billion of debt in the past 12 months and doubled returns to shareholders.
KR equity is a long trade indicator at its present price.
Kroger
Hewlett Packard
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