Enterprise software company Hewlett Packard Enterprise (HPE) - Get Report is set to report second-quarter earnings results after the closing bell Tuesday. And if you're looking for a potential 5% to 10% pop on earnings, Hewlett Packard Enterprise shares should be on your radar.

For the quarter that ended in April, the average analyst's earnings-per-share estimate anticipates 42 cents per share on revenue of $12.33 billion, marking year-over-year declines of 17.6% and 1.35%, respectively. For the full year ending in October, earnings are projected to rise 2.17% year over year to $1.88 per share, while full-year revenue of $50.79 billion would mark a 1.1% decline from the year-ago period.

Hewlett Packard Enterprise stock closed Friday at $15.87, up 0.57%. The shares are up 4.41% so far on the year, compared with a 0.41% year-to-date rise in the S&P 500 (SPX) index.

While HPE has outperformed the market year to date, the stock has been punished in past 30 days, falling almost 10%. And there's been no specific correlation between the stock's decline and company-related events.

Take a look at the chart below, courtesy of TradingView.

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Since the beginning of April, Hewlett Packard Enterprise stock has lost almost 15% of its value, falling from around $18.50 per share to Friday's close of $15.87. 

A stock that was cheap to begin with is now cheaper, trading at eight times forward estimates of $1.88 per share, or nine points below the S&P 500 index.

Purely from a risk vs. reward perspective, Hewlett Packard Enterprise stock is setting up for a nice trade. The stock could regain the 10% it has lost in the past 30 days, beginning its march toward its consensus price target of $18. The focus on this trade, however, is on the 50-day moving average (the pink line), near $17 per share.

As you can see from the two blue arrows in the chart, the stock has consolidated sideways for the past two weeks. During that span, Hewlett Packard Enterprise stock has created support around $15.67. The combination of a cheap stock price and an earnings beat on Tuesday could send HPE shares back to 50-day average of $17. The stock may even retest its two-month resistance level at around $17.49 (the purple line), for a 10% gain.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.