DXC Technology (DXC - Free Report) closed at $62.48 in the latest trading session, marking a -0.84% move from the prior day. This change lagged the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.5%.
Prior to today's trading, shares of the information technology company had lost 2.64% over the past month. This has lagged the Computer and Technology sector's gain of 2.84% and the S&P 500's gain of 2.62% in that time.
Investors will be hoping for strength from DXC as it approaches its next earnings release, which is expected to be May 23, 2019. On that day, DXC is projected to report earnings of $2.07 per share, which would represent a year-over-year decline of 9.21%. Meanwhile, our latest consensus estimate is calling for revenue of $5.31 billion, down 15.61% from the prior-year quarter.
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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. DXC is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that DXC has a Forward P/E ratio of 6.82 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.29.
Meanwhile, DXC's PEG ratio is currently 1.03. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.