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Dell Technologies (DELL) Dips More Than Broader Market: What You Should Know

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In the latest trading session, Dell Technologies (DELL - Free Report) closed at $119.62, marking a -1.21% move from the previous day. This change lagged the S&P 500's 0.58% loss on the day. Meanwhile, the Dow experienced a drop of 0.12%, and the technology-dominated Nasdaq saw a decrease of 1.15%.

The the stock of computer and technology services provider has risen by 12.61% in the past month, leading the Computer and Technology sector's loss of 0.47% and the S&P 500's loss of 1.09%.

The investment community will be paying close attention to the earnings performance of Dell Technologies in its upcoming release. The company is slated to reveal its earnings on May 30, 2024. The company's earnings per share (EPS) are projected to be $1.20, reflecting an 8.4% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $21.75 billion, up 3.96% from the year-ago period.

DELL's full-year Zacks Consensus Estimates are calling for earnings of $7.64 per share and revenue of $93.7 billion. These results would represent year-over-year changes of +7.15% and +5.96%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Dell Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Dell Technologies possesses a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Dell Technologies is holding a Forward P/E ratio of 15.84. Its industry sports an average Forward P/E of 23.82, so one might conclude that Dell Technologies is trading at a discount comparatively.

Also, we should mention that DELL has a PEG ratio of 1.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DELL's industry had an average PEG ratio of 2.18 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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