DXC Technology (DXC - Free Report) closed the most recent trading day at $50.18, moving -1.08% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the information technology company had lost 11% over the past month, lagging the Computer and Technology sector's loss of 1.9% and the S&P 500's gain of 0.33% in that time.
DXC will be looking to display strength as it nears its next earnings release. In that report, analysts expect DXC to post earnings of $1.73 per share. This would mark a year-over-year decline of 10.36%. Our most recent consensus estimate is calling for quarterly revenue of $4.92 billion, down 6.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.18 per share and revenue of $20.83 billion. These totals would mark changes of -1.92% and +0.39%, respectively, from last year.
Any recent changes to analyst estimates for DXC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection has moved 11.78% lower. DXC currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, DXC is holding a Forward P/E ratio of 6.2. This represents a discount compared to its industry's average Forward P/E of 19.8.
It is also worth noting that DXC currently has a PEG ratio of 1.58. 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. 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 group has a Zacks Industry Rank of 66, putting it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.