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Dell Technologies (DELL) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Dell Technologies (DELL) closed at $50.38 in the latest trading session, marking a -0.77% move from the prior day. This change lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.38%.

Prior to today's trading, shares of the computer and technology services provider had lost 0.65% over the past month. This has was narrower than the Computer and Technology sector's loss of 3.22% and the S&P 500's loss of 3.57% in that time.

DELL will be looking to display strength as it nears its next earnings release, which is expected to be August 29, 2019. 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.

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.

It is also important to note the recent changes to analyst estimates for DELL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. 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 7.98. This represents a discount compared to its industry's average Forward P/E of 19.24.

We can also see that DELL currently has a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 1.68 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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