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Dell Technologies (DELL - Free Report) is a Zacks Rank #1 (Buy) and it sports an A for Value and an C for Growth. This stock just reported a solid quarter and the stock is soaring as a result. Let’s explore more about this company in this Bull of The Day article.
Description
Dell Technologies Inc. is a provider of information technology solutions. The company's operating segment consists of Client Solutions, Enterprise Solutions Group and Dell Software Group. Client Solutions segment includes sales to commercial and consumer customers of desktops, thin client products, notebooks as well as services and third-party software and peripherals of Client Solutions hardware. ESG segment includes servers, networking and storage as well as services and third-party software and peripherals of ESG hardware. DSG segment includes systems management, security software solutions and information management software offerings. Dell Technologies Inc. is headquartered in Round Rock, Texas.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Dell Technologies, I see four straight beats of the Zacks Consensus Estimate over the last calendar year. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earnings estimates have increased for DELL.
The current quarter has moved from $1.37 to $1.47.
Next quarter has bumped higher to $1.78 from $1.75.
The full year numbers are more important… and they are moving higher.
This year has moved from $5.55 to $6.30
Next year is now at $6.83 up from $6.15
Valuation
The valuation is looking good here at 11x forward earnings. The topline contracted 13% in the most recent quarter and is expected to show a contraction of 16% for the full year, but the company should resume growth next year as estimates are calling for a 4.75% increase in sales. The book value is negative right now, and thanks to that the market is not giving the company a multiple of more than 1x for the price to sales. Margins are hovering in the 4.6% to 4.8% range, so a move higher in margins would have a big impact on the bottom line.
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Bull Of The Day: Dell Technologies (DELL)
Dell Technologies (DELL - Free Report) is a Zacks Rank #1 (Buy) and it sports an A for Value and an C for Growth. This stock just reported a solid quarter and the stock is soaring as a result. Let’s explore more about this company in this Bull of The Day article.
Description
Dell Technologies Inc. is a provider of information technology solutions. The company's operating segment consists of Client Solutions, Enterprise Solutions Group and Dell Software Group. Client Solutions segment includes sales to commercial and consumer customers of desktops, thin client products, notebooks as well as services and third-party software and peripherals of Client Solutions hardware. ESG segment includes servers, networking and storage as well as services and third-party software and peripherals of ESG hardware. DSG segment includes systems management, security software solutions and information management software offerings. Dell Technologies Inc. is headquartered in Round Rock, Texas.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Dell Technologies, I see four straight beats of the Zacks Consensus Estimate over the last calendar year. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earnings estimates have increased for DELL.
The current quarter has moved from $1.37 to $1.47.
Next quarter has bumped higher to $1.78 from $1.75.
The full year numbers are more important… and they are moving higher.
This year has moved from $5.55 to $6.30
Next year is now at $6.83 up from $6.15
Valuation
The valuation is looking good here at 11x forward earnings. The topline contracted 13% in the most recent quarter and is expected to show a contraction of 16% for the full year, but the company should resume growth next year as estimates are calling for a 4.75% increase in sales. The book value is negative right now, and thanks to that the market is not giving the company a multiple of more than 1x for the price to sales. Margins are hovering in the 4.6% to 4.8% range, so a move higher in margins would have a big impact on the bottom line.