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Are Investors Undervaluing Dell Technologies (DELL) Right Now?

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Zacks Equity Research
·2 min read
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Dell Technologies (DELL). DELL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also note that DELL holds a PEG ratio of 0.77. 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. DELL's PEG compares to its industry's average PEG of 2.24. DELL's PEG has been as high as 0.90 and as low as 0.38, with a median of 0.68, all within the past year.

Another notable valuation metric for DELL is its P/B ratio of 11.74. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 16.95. DELL's P/B has been as high as 14.11 and as low as 6.68, with a median of 10.52, over the past year.

These are only a few of the key metrics included in Dell Technologies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DELL looks like an impressive value stock at the moment.


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