Dell Technologies (DELL) Outpaces Stock Market Gains: What You Should Know
Dell Technologies (DELL) closed the most recent trading day at $55.54, moving +0.91% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.18%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.03%.
Prior to today's trading, shares of the computer and technology services provider had gained 24.92% over the past month. This has outpaced the Computer and Technology sector's gain of 5.62% and the S&P 500's gain of 4.28% in that time.
DELL will be looking to display strength as it nears its next earnings release, which is expected to be February 28, 2019. In that report, analysts expect DELL to post earnings of $1.89 per share. This would mark a year-over-year decline of 20.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.46 billion, up 6.96% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. DELL currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that DELL has a Forward P/E ratio of 7.94 right now. For comparison, its industry has an average Forward P/E of 22.36, which means DELL is trading at a discount to the group.
Also, we should mention that DELL has a PEG ratio of 0.66. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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