Are Investors Undervaluing Dell Technologies (DELL) Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Dell Technologies (DELL). DELL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.84, which compares to its industry's average of 22.65. Over the past year, DELL's Forward P/E has been as high as 8.98 and as low as 4.57, with a median of 7.35.

Investors should also note that DELL holds a PEG ratio of 0.74. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DELL's PEG compares to its industry's average PEG of 2.12. Within the past year, DELL's PEG has been as high as 0.75 and as low as 0.38, with a median of 0.61.

Another notable valuation metric for DELL is its P/B ratio of 11.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. DELL's current P/B looks attractive when compared to its industry's average P/B of 15.52. Over the past 12 months, DELL's P/B has been as high as 13.51 and as low as -25.76, with a median of 9.66.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Dell Technologies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DELL feels like a great value stock at the moment.

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