Back to top

Image: Bigstock

Should Value Investors Buy Dell Technologies (DELL) Stock?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Dell Technologies (DELL - Free Report) . DELL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors will also notice that DELL has a PEG ratio of 0.96. 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 2.52. Over the past 52 weeks, DELL's PEG has been as high as 1.09 and as low as 0.74, with a median of 0.87.

Another notable valuation metric for DELL is its P/B ratio of 8.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 19.15. Over the past 12 months, DELL's P/B has been as high as 11.55 and as low as 7.37, with a median of 8.91.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dell Technologies Inc. (DELL) - free report >>

Published in