Shrugging off war, the bond rout and oil crunch: Why Wall Street keeps rallying

For the first time in nearly two months, the S&P 500 closed at a record high on Tuesday, with artificial intelligence infrastructure spending driving much of the gains. This success was supported by a tech pick strategy called Beat the S&P 500, which has quietly delivered one of the year's biggest enterprise-tech turnarounds. Hewlett Packard Enterprise (HPE), picked by the models on July 1, has seen its stock rise by 60.8% since the pick date and is within 1% of its 52-week high.

Members of the Beat the S&P 500 strategy are experiencing real, open moves, such as HPE's recent performance. HPE's stock has surged 166% year-to-date, with record fiscal Q3 2026 revenue of $12.2 billion, up 34% year-over-year. The company's non-GAAP earnings per share (EPS) of $1.11 also exceeded expectations. Networking revenue increased by 74.9% to $2.9 billion, while Cloud & AI revenue rose 25.4% to $9.0 billion, driven by server systems (up 35.3% to $6.8 billion).

HPE's guidance for the fiscal year 2027 has been raised to 34-37% revenue growth and $4.40-$4.60 in EPS. Management noted that these figures do not yet include revenue from the upcoming Helios AI racks. These racks, ordered by private hyperscaler Vultr for a staggering $1.2 billion, will feature AMD-powered Helios systems, each hosting up to 72 AMD Instinct MI455X GPUs capable of 2.9 exaFLOPS of FP4 performance.

InvestingPro's AI-powered stock picker evaluates thousands of global equities each month using historical data, valuation signals, and forward-looking growth metrics. The engine identifies up to 20 high-conviction stocks based on projected medium-term upside. The strategy rebalances monthly, adding new opportunities and removing underperforming stocks. Current valuations for HPE still leave room for growth, with a forward P/E of 14.9x and a PEG of 0.52.