Dell Technologies (DELL) Gains But Lags Market: What You Should Know
In the latest trading session, Dell Technologies (DELL) closed at $55.28, marking a +0.38% move from the previous day. This move lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 1.11%.
Heading into today, shares of the computer and technology services provider had gained 5.48% over the past month, outpacing the Computer and Technology sector's gain of 4.95% and the S&P 500's gain of 3.18% in that time.
Investors will be hoping for strength from DELL as it approaches its next earnings release. On that day, DELL is projected to report earnings of $1.46 per share, which would represent a year-over-year decline of 19.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.30 billion, up 1.55% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.36 per share and revenue of $93.64 billion, which would represent changes of -53.24% and +3.34%, respectively, from the prior year.
Any recent changes to analyst estimates for DELL should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DELL is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, DELL is holding a Forward P/E ratio of 8.66. This represents a discount compared to its industry's average Forward P/E of 20.37.
Also, we should mention that DELL has a PEG ratio of 0.72. 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. DELL's industry had an average PEG ratio of 1.77 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.
To follow DELL in the coming trading sessions, be sure to utilize Zacks.com.
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