Dell Technologies (DELL) Gains But Lags Market: What You Should Know
In the latest trading session, Dell Technologies (DELL) closed at $49.52, marking a +0.08% move from the previous day. This move lagged the S&P 500's daily gain of 1.5%. Elsewhere, the Dow gained 1.48%, while the tech-heavy Nasdaq added 1.95%.
Prior to today's trading, shares of the computer and technology services provider had lost 10.43% over the past month. This has lagged the Computer and Technology sector's loss of 4.12% and the S&P 500's loss of 4.19% in that time.
Wall Street will be looking for positivity from DELL as it approaches its next earnings report date. This is expected to be August 29, 2019. In that report, analysts expect DELL to post earnings of $1.46 per share. This would mark a year-over-year decline of 19.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.37 billion, up 1.88% from the year-ago period.
DELL's full-year Zacks Consensus Estimates are calling for earnings of $6.36 per share and revenue of $93.60 billion. These results would represent year-over-year changes of -53.24% and +3.29%, respectively.
Any recent changes to analyst estimates for DELL should also be noted by investors. These revisions help to show the ever-changing nature of near-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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. DELL currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, DELL is holding a Forward P/E ratio of 7.78. This represents a discount compared to its industry's average Forward P/E of 19.68.
Also, we should mention that DELL has a PEG ratio of 0.65. 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 was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
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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