Hewlett Packard Enterprise Company (HPE): Among the Cheap ESG Stocks to Buy According to Hedge Funds
We recently compiled a list of the . In this article, we are going to take a look at where Hewlett Packard Enterprise Company (NYSE:HPE) stands against the other cheap ESG stocks.
These days, it seems like everyone wants to wear the 'saving the world' cape. Whether this urge to make a real impact on the world stems from a desire to ride the social trend wave or simply out of genuine concern is, well, a debate for another day. For now, let's focus on the fact that all companies must adhere to Corporate Social Responsibility (CSR) by law.
In other words, ESG companies are those that incorporate Environmental, Social, and Governance factors into their operations and decision-making. This framework is utilized to measure an organization's practices and performance on sustainability and ethical grounds. In capital markets, some investors employ ESG criteria to assess companies and make their investment decisions accordingly, a practice known as ESG investing. While investing delivers financial returns, ESG investing offers both financial returns and societal impacts, and that's what is most valued by some investors.
Some believe ESG investing is aligned with reduced risk exposure, stakeholder interests, and superior returns. Not only attractive in theory, but there are reports that back this form of investing. For instance, the Sustainability Megatrends Report by Cushman & Wakefield reveals that ESG companies are gaining traction from institutional investors. A survey of 250 institutional investors indicated that around 60% noted higher performance yield from ESG investments, and 78% were willing to pay higher premiums for these funds.
'Institutional investors are showing increased demand for properties with strong ESG-related management and activities,' the report underscores.
A US SIF "Trends Report" reveals that out of the US market size of $52.5 trillion, $6.5 trillion (12%) is identified as a sustainable or ESG investment. Having said that, as many as 73% of respondents believe the sustainable investment market will grow over the next few years. Therefore, community investing continues to shine with rising enthusiasm across several types of investors.
ESG companies are mainly ranked by third-party ranking agencies based on how well they perform across Environmental, Social, and Governance indicators. Using standardized metrics, proprietary models, and disclosures, the companies are then assessed and compared. Among the most notable agencies are MSCI, Sustainalytics (by Morningstar), Refinitiv ESG Scores, and S&P Global ESG Scores. In this analysis, we have used the ratings by Sustainalytics, which covers over 15,000 firms across 42 industries globally. The firm recently disclosed its 2025 list of ESG Top-Rated Companies, identifying Global 50 Top-Rated companies and other regional and industry leaders. Given this, we will take a look at some of the best ESG stocks to consider.
We have compiled a list of 11 companies ranked by Sustainalytics (by Morningstar) in its recent ESG Top-Rated Companies report. From the report, we identified companies with a forward P/E less than 15, extracted from FINVIZ. From there, we picked companies with the highest number of hedge fund investors, as per Insider Monkey's database of Q4 2024. From less preferred to highly preferred, according to hedge funds, the selected stocks are listed in either the global, regional, or industry standings in the report.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A woman programmer in a modern office working with multiple computer servers.
Number of Hedge funds holding: 66
Forward P/E as of May 06, 2025: 8.01
Hewlett Packard Enterprise Company (NYSE:HPE) is a U.S.-based leading information technology company that provides smart solutions and cloud-based services. The core offerings of the company include servers, storage devices, networking products, software, IT support, and customized financial solutions. From retailers and distribution partners to direct sales management, independent software vendors, and equipment manufacturers, the tech giant markets through a range of experts.
Some companies get things done, while others just plan. Hewlett Packard Enterprise Company (NYSE:HPE) is one of the few companies that have successfully completed the transition to renewable energy usage in its operations. Not only this, the company is among the three companies with a net-zero target of 2040, and interim targets, validated by the Net-Zero Standard of the Science Based Targets initiative (SBTi).
Hewlett Packard Enterprise Company (NYSE:HPE) has initiated the HPE Sustainability Insight Center, incorporated into its GreenLake platform, for customers all around the globe. This makes real-time monitoring of the customers' IT estates' energy consumption with approximations of the related carbon footprint to allow effective management. This ensures that the client makes informed decisions that not only reduce costs but also achieve the associated sustainable IT goals. Thus, the micro-level initiative delivers returns at the macro level, and that's what is so special about the platform.
The social strategy of Hewlett Packard Enterprise Company (NYSE:HPE) is such that it assists individuals and communities in preparing for and recovering from adverse events, particularly climate-related. It also extends support to organizations working towards protecting human rights. The Climate Technology Impact Accelerators help drive innovation to tackle climate change, with each accelerator strengthening startups with leaders from diverse backgrounds. With HPE Foundation in action, and funding organizations that fight challenges like climate change, equitable healthcare, and human rights, HPE is nothing but a perfect cheap ESG stock to invest in.
Overall HPE ranks 7th on our list of cheap ESG stocks to buy according to hedge funds. While we acknowledge the potential of HPE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HPE but that trades at less than 5 times its earnings, check out our report about this .
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Disclosure: None. This article is originally published at Insider Monkey.
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