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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 the most recent trading day at $42.25, moving -1.01% from the previous trading session. This move lagged the S&P 500's daily loss of 0.89%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.24%.

Heading into today, shares of the computer and technology services provider had gained 24.58% over the past month, outpacing the Computer and Technology sector's gain of 10.6% and the S&P 500's gain of 11.42% in that time.

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 $1.59 per share, which would represent a year-over-year decline of 32.91%. Our most recent consensus estimate is calling for quarterly revenue of $24.34 billion, down 14.3% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $101.57 billion, which would represent changes of +8.04% and -5.11%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Dell Technologies. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.72% lower within the past month. Dell Technologies is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Dell Technologies has a Forward P/E ratio of 6.35 right now. Its industry sports an average Forward P/E of 26.59, so we one might conclude that Dell Technologies is trading at a discount comparatively.

We can also see that DELL currently has a PEG ratio of 0.53. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% 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.

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


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