Dell Technologies (DELL) Plunges More Than Bigger Markets: What You Need to Know
IDuring the last trading session, Dell Technologies (DELL) closed at $ 56.17, marking a decline of 0.6% from the previous day. This move lagged behind the S&P 500’s 0.26% daily loss. At the same time, the Dow Jones lost 0.16% and the tech-rich Nasdaq lost 0.04%.
Prior to today, shares of the IT and technology services provider had lost 1.12% over the past month, trailing the gain of the IT and technology sector of 2.19% and the gain of 4.82% of the S&P 500 during this period.
Dell Technologies will look to show strength as its next earnings release nears, which is scheduled for February 24, 2022. On that day, Dell Technologies is expected to report earnings of $ 1.94 per share, which would represent a year over-annual decrease of 28.15%. Meanwhile, our latest consensus estimate projects revenue of $ 27.47 billion, up 5.06% from the previous year’s quarter.
For the full year, our Zacks consensus estimates project earnings of $ 8.66 per share and revenue of $ 106.49 billion, which would represent changes of + 8.25% and + 12.92%, respectively, over the previous year.
Investors should also note any recent changes in analyst estimates for Dell Technologies. These revisions generally reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to stock movements close to the team. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.
The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained stagnant. Dell Technologies currently has a Zacks rank of 5 (strong sell).
The valuation is also important, so investors should note that Dell Technologies currently has a forward P / E ratio of 6.52. For comparison, its sector has an average forward P / E of 33.78, which means Dell Technologies is trading below the group.
We can also see that DELL currently has a PEG ratio of 0.54. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. DELL’s industry had an average PEG ratio of 1.44 at yesterday’s close.
The IT industry – IT services is part of the IT and technology sector. This industry currently has a Zacks Industry Rank of 110, which places it in the top 44% of all 250+ industries.
The Zacks Industry Rankings include is ranked from best to worst in terms of the average Zacks rankings of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these stock market metrics, and more, over future trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.