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Are Investors Undervaluing Dell Technologies (DELL) 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.
One company to watch right now is Dell Technologies (DELL - Free Report) . DELL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that DELL holds a PEG ratio of 1.03. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DELL's industry has an average PEG of 2.66 right now. Over the last 12 months, DELL's PEG has been as high as 1.07 and as low as 0.50, with a median of 0.80.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DELL has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.97.
TaskUs (TASK - Free Report) may be another strong Computers - IT Services stock to add to your shortlist. TASK is a # 2 (Buy) stock with a Value grade of A.
TaskUs is trading at a forward earnings multiple of 8.94 at the moment, with a PEG ratio of 2.51. This compares to its industry's average P/E of 37.75 and average PEG ratio of 2.66.
TASK's price-to-earnings ratio has been as high as 14.33 and as low as 6.39, with a median of 9.10, while its PEG ratio has been as high as 3.10 and as low as 0.83, with a median of 2.23, all within the past year.
TaskUs sports a P/B ratio of 2.50 as well; this compares to its industry's price-to-book ratio of 24.85. In the past 52 weeks, TASK's P/B has been as high as 4.49, as low as 1.73, with a median of 2.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dell Technologies and TaskUs are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DELL and TASK feels like a great value stock at the moment.
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Are Investors Undervaluing Dell Technologies (DELL) Right Now?
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.
One company to watch right now is Dell Technologies (DELL - Free Report) . DELL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that DELL holds a PEG ratio of 1.03. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DELL's industry has an average PEG of 2.66 right now. Over the last 12 months, DELL's PEG has been as high as 1.07 and as low as 0.50, with a median of 0.80.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DELL has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.97.
TaskUs (TASK - Free Report) may be another strong Computers - IT Services stock to add to your shortlist. TASK is a # 2 (Buy) stock with a Value grade of A.
TaskUs is trading at a forward earnings multiple of 8.94 at the moment, with a PEG ratio of 2.51. This compares to its industry's average P/E of 37.75 and average PEG ratio of 2.66.
TASK's price-to-earnings ratio has been as high as 14.33 and as low as 6.39, with a median of 9.10, while its PEG ratio has been as high as 3.10 and as low as 0.83, with a median of 2.23, all within the past year.
TaskUs sports a P/B ratio of 2.50 as well; this compares to its industry's price-to-book ratio of 24.85. In the past 52 weeks, TASK's P/B has been as high as 4.49, as low as 1.73, with a median of 2.51.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dell Technologies and TaskUs are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DELL and TASK feels like a great value stock at the moment.