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Should Value Investors Buy DXC Technology (DXC) Stock?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is DXC Technology (DXC - Free Report) . DXC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.91. This compares to its industry's average Forward P/E of 19.92. DXC's Forward P/E has been as high as 11.40 and as low as 5.66, with a median of 8.70, all within the past year.
DXC is also sporting a PEG ratio of 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DXC's PEG compares to its industry's average PEG of 1.87. Within the past year, DXC's PEG has been as high as 1.54 and as low as 0.90, with a median of 1.09.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DXC has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.95.
These are only a few of the key metrics included in DXC Technology's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DXC looks like an impressive value stock at the moment.
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Should Value Investors Buy DXC Technology (DXC) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is DXC Technology (DXC - Free Report) . DXC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.91. This compares to its industry's average Forward P/E of 19.92. DXC's Forward P/E has been as high as 11.40 and as low as 5.66, with a median of 8.70, all within the past year.
DXC is also sporting a PEG ratio of 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DXC's PEG compares to its industry's average PEG of 1.87. Within the past year, DXC's PEG has been as high as 1.54 and as low as 0.90, with a median of 1.09.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DXC has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.95.
These are only a few of the key metrics included in DXC Technology's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DXC looks like an impressive value stock at the moment.