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Are Investors Undervaluing Dell Technologies (DELL) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Dell Technologies (DELL - Free Report) is a stock many investors are watching right now. DELL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.53. This compares to its industry's average Forward P/E of 30.36. Over the past 52 weeks, DELL's Forward P/E has been as high as 11.95 and as low as 5.42, with a median of 8.14.

Investors will also notice that DELL has a PEG ratio of 0.88. 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. DELL's PEG compares to its industry's average PEG of 2.22. Within the past year, DELL's PEG has been as high as 1 and as low as 0.45, with a median of 0.68.

If you're looking for another solid Computers - IT Services value stock, take a look at Science Applications International (SAIC - Free Report) . SAIC is a # 2 (Buy) stock with a Value score of A.

Additionally, Science Applications International has a P/B ratio of 3.19 while its industry's price-to-book ratio sits at 20.87. For SAIC, this valuation metric has been as high as 3.83, as low as 3.01, with a median of 3.41 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Dell Technologies and Science Applications International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DELL and SAIC feels like a great value stock at the moment.


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