The latest trading session saw Dell Technologies (DELL) ending at $94.94, denoting a +0.57% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 1.26%.
Coming into today, shares of the computer and technology services provider had lost 2.78% in the past month. In that same time, the Computer and Technology sector lost 6.23%, while the S&P 500 lost 4.77%.
Investors will be eagerly watching for the performance of Dell Technologies in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.68, indicating a 32.28% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $23.16 billion, up 4.13% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.90 per share and revenue of $101.27 billion, which would represent changes of +9.34% and +5.97%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Dell Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 6.17% downward. Dell Technologies is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Dell Technologies is holding a Forward P/E ratio of 10.6. This signifies a premium in comparison to the average Forward P/E of 9.77 for its industry.
We can additionally observe that DELL currently boasts a PEG ratio of 0.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Micro Computers was holding an average PEG ratio of 1.54 at yesterday's closing price.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 25% 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.
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Dell Technologies Inc. (DELL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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