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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
DXC Technology Company. (DXC)
Tysons, VA-based DXC Technology Company was formed by the merger of Computer Sciences Corporation (“CSC”) and Enterprise Services Division of Hewlett Packard Enterprise (“HPE”) which completed on Apr 1, 2017. While CSC was founded in 1959, HPE came into existence after its separation from the former Hewlett Packard Company on Nov 1, 2015.
DXC sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Computers - IT Services industry's P/E of 20.7X, shares of DXC Technology Company. are trading at a forward P/E of 5.1X. DXC also has a PEG Ratio of 1, a Price/Cash Flow ratio of 1.5X, and a Price/Sales ratio of 0.2X.
A company's earnings performance is important for value investors as well. For fiscal 2025, six analysts revised their earnings estimate higher in the last 60 days for DXC, while the Zacks Consensus Estimate has increased $0.17 to $3.35 per share. DXC also holds an average earnings surprise of 23.8%.
Investors should take the time to consider DXC for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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DXC Technology Company. (DXC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).