Dell Technologies (DELL) Exceeds Market Returns: Some Facts to Consider

Dell Technologies (DELL) closed at $494.51 in the latest trading session, marking a +2.07% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.65%. Elsewhere, the Dow saw an upswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.81%.

Coming into today, shares of the computer and technology services provider had gained 17.4% in the past month. In that same time, the Computer and Technology sector gained 0.81%, while the S&P 500 gained 2.38%.

Analysts and investors alike will be keeping a close eye on the performance of Dell Technologies in its upcoming earnings disclosure. The company's earnings report is set to go public on September 3, 2026. The company's earnings per share (EPS) are projected to be $4.88, reflecting a 110.34% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $44.79 billion, reflecting a 50.43% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $19.16 per share and revenue of $175.5 billion, which would represent changes of +86.02% and +54.58%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Dell Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 moved 2.43% higher. Currently, Dell Technologies is carrying a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Dell Technologies is currently exchanging hands at a Forward P/E ratio of 25.29. This represents no noticeable deviation compared to its industry average Forward P/E of 25.29.

We can also see that DELL currently has a PEG ratio of 0.96. 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. The Computer - Micro Computers was holding an average PEG ratio of 2.56 at yesterday's closing price.

The Computer - Micro Computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 22, placing it within the top 9% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).

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