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Should Value Investors Buy Dell Technologies (DELL) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Dell Technologies (DELL - Free Report) . DELL 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 15.60. This compares to its industry's average Forward P/E of 38.67. Over the past 52 weeks, DELL's Forward P/E has been as high as 17.30 and as low as 6.05, with a median of 9.75.
We also note that DELL holds a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DELL's PEG compares to its industry's average PEG of 2.81. DELL's PEG has been as high as 1.44 and as low as 0.50, with a median of 0.81, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DELL has a P/S ratio of 0.91. This compares to its industry's average P/S of 2.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dell Technologies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DELL feels like a great value stock at the moment.
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Should Value Investors Buy Dell Technologies (DELL) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Dell Technologies (DELL - Free Report) . DELL 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 15.60. This compares to its industry's average Forward P/E of 38.67. Over the past 52 weeks, DELL's Forward P/E has been as high as 17.30 and as low as 6.05, with a median of 9.75.
We also note that DELL holds a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DELL's PEG compares to its industry's average PEG of 2.81. DELL's PEG has been as high as 1.44 and as low as 0.50, with a median of 0.81, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DELL has a P/S ratio of 0.91. This compares to its industry's average P/S of 2.21.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Dell Technologies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DELL feels like a great value stock at the moment.