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What Makes DXC Technology (DXC) a Potential Pick Right Now?
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The technology space continues to be investors’ favorite due to its dynamic nature. This field is anticipated to grow faster than before. If you invest right, you can reap the benefits over time. The indicators of a stock’s bullish run include a rise in its share price, strong fundamentals and a continued uptrend in estimates.
Below we have evaluated one technology company that has demonstrated remarkable share price performance so far this year. DXC Technology Company (DXC - Free Report) generated high returns for investors in the last one year and has the potential to exceed expectations in the days ahead.
Over the past one year, shares of the company have risen 59.75%, outperforming the Zacks categorized Computers – IT Services industry’s increase of just 14.50%.
Let’s look at the reasons behind DXC Technology’s solid momentum.
Upward Estimate Revisions
In the last 60 days, the Zacks Consensus Estimate for DXC Technology’s fiscal 2018 witnessed upward revisions. The Zacks Consensus Estimate for fiscal 2018 is now pegged at $6.70 per share compared with $3.18 projected 60 days ago.
What’s Driving the Stock?
Computer Sciences Corporation, a fully-owned subsidiary (effective Apr 1) of DXC Technology, recently released fourth-quarter fiscal 2017. Notably, DXC Technology is a result of merger between Computer Sciences and Enterprise Services Division of Hewlett Packard Enterprise (HPE - Free Report) , which was closed on Apr 1, 2017.
The company reported fourth-quarter fiscal 2017 non-GAAP earnings from continuing operations of $1.15 per share, which surpassed the Zacks Consensus Estimate of 85 cents. Earnings increased on a year-over-year basis.
Revenues were also up 4.5% from the year-ago quarter to $1.889 billion.
The merger with HPE’s Enterprise Services business has opened up new avenues of growth and will help the combined entity to become a leading player in the IT services domain.
DXC Technology has been making strategic acquisitions, such as UXC and Xchanging, to strengthen its portfolio, which should drive growth over the long run.
DXC Technology has also delivered positive earnings surprises in the last four quarters with an average beat of 23.56%.
Given the company’s long-term earnings per share growth rate of 8%, a VGM Style Score of 'A' and a Zacks Rank #1 (Strong Buy), we believe that the stock still has much upside left. You can see the complete list of today’s Zacks #1 Rank stocks here.
Keeping these positives in mind, we conclude that DXC Technology is a stock that deserves a place in investors’ portfolio.
Other Key Picks
A few other stocks worth considering in the broader technology sector are Applied Optoelectronics, Inc. (AAOI - Free Report) and Applied Materials, Inc. (AMAT - Free Report) , both sporting a Zacks Rank #1. Applied Optoelectronics and Applied Materials have expected long-term EPS growth rate of 20% and 16.58%, respectively.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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What Makes DXC Technology (DXC) a Potential Pick Right Now?
The technology space continues to be investors’ favorite due to its dynamic nature. This field is anticipated to grow faster than before. If you invest right, you can reap the benefits over time. The indicators of a stock’s bullish run include a rise in its share price, strong fundamentals and a continued uptrend in estimates.
Below we have evaluated one technology company that has demonstrated remarkable share price performance so far this year. DXC Technology Company (DXC - Free Report) generated high returns for investors in the last one year and has the potential to exceed expectations in the days ahead.
Over the past one year, shares of the company have risen 59.75%, outperforming the Zacks categorized Computers – IT Services industry’s increase of just 14.50%.
Let’s look at the reasons behind DXC Technology’s solid momentum.
Upward Estimate Revisions
In the last 60 days, the Zacks Consensus Estimate for DXC Technology’s fiscal 2018 witnessed upward revisions. The Zacks Consensus Estimate for fiscal 2018 is now pegged at $6.70 per share compared with $3.18 projected 60 days ago.
What’s Driving the Stock?
Computer Sciences Corporation, a fully-owned subsidiary (effective Apr 1) of DXC Technology, recently released fourth-quarter fiscal 2017. Notably, DXC Technology is a result of merger between Computer Sciences and Enterprise Services Division of Hewlett Packard Enterprise (HPE - Free Report) , which was closed on Apr 1, 2017.
The company reported fourth-quarter fiscal 2017 non-GAAP earnings from continuing operations of $1.15 per share, which surpassed the Zacks Consensus Estimate of 85 cents. Earnings increased on a year-over-year basis.
Revenues were also up 4.5% from the year-ago quarter to $1.889 billion.
The merger with HPE’s Enterprise Services business has opened up new avenues of growth and will help the combined entity to become a leading player in the IT services domain.
DXC Technology has been making strategic acquisitions, such as UXC and Xchanging, to strengthen its portfolio, which should drive growth over the long run.
DXC Technology has also delivered positive earnings surprises in the last four quarters with an average beat of 23.56%.
Given the company’s long-term earnings per share growth rate of 8%, a VGM Style Score of 'A' and a Zacks Rank #1 (Strong Buy), we believe that the stock still has much upside left. You can see the complete list of today’s Zacks #1 Rank stocks here.
Keeping these positives in mind, we conclude that DXC Technology is a stock that deserves a place in investors’ portfolio.
Other Key Picks
A few other stocks worth considering in the broader technology sector are Applied Optoelectronics, Inc. (AAOI - Free Report) and Applied Materials, Inc. (AMAT - Free Report) , both sporting a Zacks Rank #1. Applied Optoelectronics and Applied Materials have expected long-term EPS growth rate of 20% and 16.58%, respectively.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>