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DXC Technology (DXC) Soars 10.4%: Is Further Upside Left in the Stock?

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DXC Technology Company. (DXC - Free Report) shares rallied 10.4% in the last trading session to close at $15.56. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 19.5% loss over the past four weeks.

The upswing was likely driven by a broader market rally following US President Donald Trump’s announcement of pausing the reciprocal tariffs for 90 days. However, a baseline tariff of 10% on imports would continue to apply.

This company is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of -21.7%. Revenues are expected to be $3.13 billion, down 7.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For DXC Technology, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DXC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

DXC Technology is part of the Zacks Computers - IT Services industry. ASGN Inc (ASGN - Free Report) , another stock in the same industry, closed the last trading session 8.3% higher at $61.58. ASGN has returned -20.2% in the past month.

For ASGN Inc, the consensus EPS estimate for the upcoming report has changed -1.6% over the past month to $0.95. This represents a change of -18.1% from what the company reported a year ago. ASGN Inc currently has a Zacks Rank of #3 (Hold).


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