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Are Investors Undervaluing Dell Technologies (DELL) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Dell Technologies (DELL - Free Report) is a stock many investors are watching right now. DELL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.45, which compares to its industry's average of 31.75. Over the past year, DELL's Forward P/E has been as high as 21.53 and as low as 9.02, with a median of 11.57.
We also note that DELL holds a PEG ratio of 1.23. 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 industry has an average PEG of 2.30 right now. DELL's PEG has been as high as 2.27 and as low as 0.75, with a median of 0.96, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DELL has a P/S ratio of 0.99. This compares to its industry's average P/S of 2.06.
Value investors will likely look at more than just these metrics, but the above data helps show that Dell Technologies is likely undervalued currently. And when considering the strength of its earnings outlook, DELL sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Dell Technologies (DELL) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Dell Technologies (DELL - Free Report) is a stock many investors are watching right now. DELL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.45, which compares to its industry's average of 31.75. Over the past year, DELL's Forward P/E has been as high as 21.53 and as low as 9.02, with a median of 11.57.
We also note that DELL holds a PEG ratio of 1.23. 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 industry has an average PEG of 2.30 right now. DELL's PEG has been as high as 2.27 and as low as 0.75, with a median of 0.96, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DELL has a P/S ratio of 0.99. This compares to its industry's average P/S of 2.06.
Value investors will likely look at more than just these metrics, but the above data helps show that Dell Technologies is likely undervalued currently. And when considering the strength of its earnings outlook, DELL sticks out at as one of the market's strongest value stocks.