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Dell Technologies (DELL) Gains But Lags Market: What You Should Know

Dell Technologies (DELL) closed the most recent trading day at $35.29, moving +1.64% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.97%. Elsewhere, the Dow gained 1.88%, while the tech-heavy Nasdaq added 0.24%.

Coming into today, shares of the computer and technology services provider had lost 12.52% in the past month. In that same time, the Computer and Technology sector lost 11.71%, while the S&P 500 lost 9.93%.

Dell Technologies will be looking to display strength as it nears its next earnings release. On that day, Dell Technologies is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 31.22%. Our most recent consensus estimate is calling for quarterly revenue of $24.58 billion, down 13.47% from the year-ago period.

DELL's full-year Zacks Consensus Estimates are calling for earnings of $6.80 per share and revenue of $102.2 billion. These results would represent year-over-year changes of +9.32% and -4.52%, respectively.

Investors should also note any recent changes to analyst estimates for Dell Technologies. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.61% lower within the past month. Dell Technologies is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Dell Technologies has a Forward P/E ratio of 5.1 right now. Its industry sports an average Forward P/E of 19.83, so we one might conclude that Dell Technologies is trading at a discount comparatively.

Investors should also note that DELL has a PEG ratio of 0.43 right now. 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 was holding an average PEG ratio of 1.12 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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