In the latest trading session, Dell Technologies (DELL) closed at $37.86, marking a +1.07% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the computer and technology services provider had gained 0.46% over the past month, outpacing the Computer and Technology sector's loss of 4.64% and the S&P 500's loss of 3.29% in that time.
Investors will be hoping for strength from Dell Technologies as it approaches its next earnings release. The company is expected to report EPS of $1.63, down 31.22% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $24.58 billion, down 13.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.80 per share and revenue of $102.2 billion. These totals would mark changes of +9.32% and -4.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Dell Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dell Technologies is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Dell Technologies has a Forward P/E ratio of 5.51 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.45.
Investors should also note that DELL has a PEG ratio of 0.46 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 1.22 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 133, putting it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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