Benzinga - by Zacks, Benzinga Contributor.
Dell Technologies (NYSE: DELL) ended the recent trading session at $131.68, demonstrating a +0.05% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.51%. Meanwhile, the Dow experienced a rise of 0.85%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Coming into today, shares of the computer and technology services provider had gained 6.68% in the past month. In that same time, the Computer and Technology sector gained 0.73%, while the S&P 500 lost 0.25%.
Investors will be eagerly watching for the performance of Dell Technologies in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 30, 2024. In that report, analysts expect Dell Technologies to post earnings of $1.20 per share. This would mark a year-over-year decline of 8.4%. Our most recent consensus estimate is calling for quarterly revenue of $21.75 billion, up 3.96% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.64 per share and a revenue of $93.7 billion, indicating changes of +7.15% and +5.96%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Dell Technologies. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dell Technologies currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Dell Technologies currently has a Forward P/E ratio of 17.22. For comparison, its industry has an average Forward P/E of 25.24, which means Dell Technologies is trading at a discount to the group.
Meanwhile, DELL's PEG ratio is currently 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 2.21 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 137, positioning it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
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