Dell Technologies (DELL) closed the most recent trading day at $437.65, moving -5.41% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the computer and technology services provider had gained 7.11% over the past month, outpacing the Computer and Technology sector's gain of 1.48% and the S&P 500's gain of 3.33%.
The investment community will be paying close attention to the earnings performance of Dell Technologies in its upcoming release. The company's upcoming EPS is projected at $4.89, signifying a 110.78% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $46.5 billion, indicating a 56.15% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.8 per share and revenue of $174.48 billion, which would represent changes of +82.52% and +67.63%, respectively, from the prior year.
Any recent changes to analyst estimates for Dell Technologies should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. As of now, Dell Technologies holds a Zacks Rank of #2 (Buy).
In terms of valuation, Dell Technologies is currently trading at a Forward P/E ratio of 24.61. For comparison, its industry has an average Forward P/E of 24.61, which means Dell Technologies is trading at no noticeable deviation to the group.
We can additionally observe that DELL currently boasts a PEG ratio of 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Micro Computers industry had an average PEG ratio of 2.64.
The Computer - Micro Computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DELL in the coming trading sessions, be sure to utilize Zacks.com.
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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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