Dell Technologies (DELL) closed the most recent trading day at $53.78, moving +0.56% from the previous trading session. This change outpaced the S&P 500's 0.46% gain on the day. Meanwhile, the Dow gained 0.9%, and the Nasdaq, a tech-heavy index, added 0.59%.
Heading into today, shares of the computer and technology services provider had lost 0.65% over the past month, lagging the Computer and Technology sector's gain of 5.19% and the S&P 500's gain of 4.04% in that time.
DELL will be looking to display strength as it nears 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, our latest consensus estimate is calling for revenue of $23.30 billion, up 1.55% from the prior-year quarter.
DELL's full-year Zacks Consensus Estimates are calling for earnings of $6.36 per share and revenue of $93.64 billion. These results would represent year-over-year changes of -53.24% and +3.34%, respectively.
Investors should also note any recent changes to analyst estimates for DELL. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.42% lower within the past month. DELL is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note DELL's current valuation metrics, including its Forward P/E ratio of 8.41. This valuation marks a discount compared to its industry's average Forward P/E of 19.67.
Investors should also note that DELL has a PEG ratio of 0.7 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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