Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
DXC Technology Company. (DXC)
Tysons, VA-based DXC Technology Company was formed by the merger of Computer Sciences Corporation (“CSC”) and Enterprise Services Division of Hewlett Packard Enterprise (“HPE”) which completed on Apr 1, 2017. While CSC was founded in 1959, HPE came into existence after split of former Hewlett Packard Company in Nov 1, 2015.
DXC sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Computers - IT Services industry's P/E of 21.7X, shares of DXC Technology Company. are trading at a forward P/E of 7.3X. DXC also has a PEG Ratio of 0.6, a Price/Cash Flow ratio of 2.7X, and a Price/Sales ratio of 0.4X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.00 to $3.83 per share. DXC has an average earnings surprise of 2.2%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding DXC to their portfolios.
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DXC Technology Company. (DXC) : Free Stock Analysis Report
