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Is Dell Technologies (DELL) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Dell Technologies (DELL - Free Report) . DELL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.76, which compares to its industry's average of 16.12. Over the last 12 months, DELL's Forward P/E has been as high as 7.49 and as low as 6.16, with a median of 6.76.

Investors should also note that DELL holds a PEG ratio of 0.56. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DELL's industry has an average PEG of 1.43 right now. Over the past 52 weeks, DELL's PEG has been as high as 0.56 and as low as 0.51, with a median of 0.53.

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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