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Dell Technologies (DELL) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, Dell Technologies (DELL - Free Report) closed at $141.64, marking a +2.4% move from the previous day. This move outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow experienced a rise of 1.1%, and the technology-dominated Nasdaq saw an increase of 1.39%.

Heading into today, shares of the computer and technology services provider had gained 10.07% over the past month, outpacing the Computer and Technology sector's gain of 5.15% and the S&P 500's gain of 2%.

Market participants will be closely following the financial results of Dell Technologies in its upcoming release. The company plans to announce its earnings on August 28, 2025. The company's upcoming EPS is projected at $2.28, signifying a 20.63% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $29.23 billion, up 16.78% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.45 per share and revenue of $104.26 billion. These totals would mark changes of +16.09% and +9.1%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dell Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% decrease. As of now, Dell Technologies holds a Zacks Rank of #4 (Sell).

In terms of valuation, Dell Technologies is currently trading at a Forward P/E ratio of 14.64. This expresses a premium compared to the average Forward P/E of 13.03 of its industry.

We can also see that DELL currently has a PEG ratio of 0.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Micro Computers industry stood at 1.48 at the close of the market yesterday.

The Computer - Micro Computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 41% of all 250+ industries.

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

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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