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Dell Technologies (DELL) Dips More Than Broader Markets: What You Should Know

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Dell Technologies (DELL - Free Report) closed at $38.40 in the latest trading session, marking a -1.94% move from the prior day. This change lagged the S&P 500's 0.75% loss on the day. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq added 0.13%.

Coming into today, shares of the computer and technology services provider had gained 14.6% in the past month. In that same time, the Computer and Technology sector gained 0.71%, while the S&P 500 gained 4.98%.

Investors will be hoping for strength from Dell Technologies as it approaches its next earnings release, which is expected to be November 21, 2022. On that day, Dell Technologies is projected to report earnings of $1.61 per share, which would represent a year-over-year decline of 32.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.34 billion, down 14.3% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.76 per share and revenue of $101.63 billion. These totals would mark changes of +8.68% and -5.05%, respectively, from last year.

Any recent changes to analyst estimates for Dell Technologies should also be noted by investors. These revisions typically 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.83% lower. Dell Technologies currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Dell Technologies currently has a Forward P/E ratio of 5.79. Its industry sports an average Forward P/E of 24.82, so we one might conclude that Dell Technologies is trading at a discount comparatively.

It is also worth noting that DELL currently has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 1.27 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.

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


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