Here's Why DXC Technology Company. (DXC) is a Strong Value Stock

Zacks
13 Mar

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

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

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight 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 boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of DXC Technology Company. are trading at a forward earnings multiple of 5.1X, as well as 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).

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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