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

In the latest trading session, Dell Technologies (DELL) closed at $48.30, marking a +0.17% move from the previous day. This change lagged the S&P 500's 0.4% gain on the day. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.46%.

Coming into today, shares of the computer and technology services provider had gained 10.95% in the past month. In that same time, the Computer and Technology sector gained 14.05%, while the S&P 500 gained 12.15%.

Wall Street will be looking for positivity from Dell Technologies as it approaches its next earnings report date. This is expected to be August 25, 2022. On that day, Dell Technologies is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 27.23%. Meanwhile, our latest consensus estimate is calling for revenue of $26.59 billion, up 1.74% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.03 per share and revenue of $107.02 billion. These totals would mark changes of +13.02% and -0.02%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Dell Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 0.27% lower within the past month. Dell Technologies currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Dell Technologies has a Forward P/E ratio of 6.86 right now. This valuation marks a discount compared to its industry's average Forward P/E of 22.5.

It is also worth noting that DELL currently has a PEG ratio of 0.57. 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 1.45 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow DELL in the coming trading sessions, be sure to utilize Zacks.com.

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