In the latest trading session, DXC Technology (DXC - Free Report) closed at $65, marking a +1.03% move from the previous day. This move outpaced the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the information technology company had gained 0.05% over the past month. This has lagged the Computer and Technology sector's gain of 6.46% and the S&P 500's gain of 4.67% in that time.
DXC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.07, down 9.21% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.32 billion, down 15.55% from the year-ago period.
Investors should also note any recent changes to analyst estimates for DXC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. DXC is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, DXC currently has a Forward P/E ratio of 6.96. This valuation marks a discount compared to its industry's average Forward P/E of 19.19.
Meanwhile, DXC's PEG ratio is currently 1.05. 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. The Computers - IT Services was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.