Markets

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

Dell Technologies (DELL) closed at $43.33 in the latest trading session, marking a -0.87% move from the prior day. This change lagged the S&P 500's daily gain of 1.32%. Elsewhere, the Dow gained 1.38%, while the tech-heavy Nasdaq added 1.74%.

Prior to today's trading, shares of the computer and technology services provider had lost 57.73% over the past month. This has lagged the Computer and Technology sector's gain of 2.64% and the S&P 500's gain of 4.16% in that time.

Investors will be hoping for strength from DELL as it approaches its nex t earnings release, which is expected to be March 14, 2019. The company is expected to report EPS of $1.91, down 20.08% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.57 per share and revenue of $89.86 billion, which would represent changes of +6.48% and +14.24%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DELL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 5.38% higher within the past month. DELL currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note DELL's current valuation metrics, including its Forward P/E ratio of 6.66. This represents a discount compared to its industry's average Forward P/E of 22.94.

It is also worth noting that DELL currently has a PEG ratio of 0.55. 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. DELL's industry had an average PEG ratio of 1.51 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 23, putting it in the top 9% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dell Technologies Inc. (DELL): Get Free Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

DELL

Other Topics

Investing Stocks