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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Dell Technologies (DELL - Free Report) is a stock many investors are watching right now. DELL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

DELL is also sporting a PEG ratio of 0.76. 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. DELL's PEG compares to its industry's average PEG of 2.23. Over the past 52 weeks, DELL's PEG has been as high as 0.90 and as low as 0.38, with a median of 0.73.

Investors should also recognize that DELL has a P/B ratio of 9.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 16.95. Over the past year, DELL's P/B has been as high as 14.11 and as low as 6.68, with a median of 9.89.

These are only a few of the key metrics included in Dell Technologies'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, DELL looks like an impressive value stock at the moment.


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