Is Dell Technologies (DELL) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Dell Technologies (DELL). DELL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
DELL is also sporting a PEG ratio of 0.92. 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. DELL's PEG compares to its industry's average PEG of 2.67. Over the last 12 months, DELL's PEG has been as high as 1.09 and as low as 0.74, with a median of 0.93.
Investors should also recognize that DELL has a P/B ratio of 8.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 19.58. Over the past 12 months, DELL's P/B has been as high as 11.55 and as low as 7.30, with a median of 8.77.
These are only a few of the key metrics included in Dell Technologies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DELL looks like an impressive value stock at the moment.
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Dell Technologies Inc. (DELL): Free Stock Analysis Report
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