DXC Technology (DXC, $29.75) gets a price target cut from Wells Fargo analyst
DXC Technology shares fell -4.4% Thursday, following a price target cut from a Wells Fargo Securities analyst.
Analyst Ed Caso lowered his price target for the information technology company to $32 from $46 a share. Caso indicated that the recent “unexpected and abrupt” stepping down of DXC Technology CEO Mike Lawrie and the immediate shift to new CEO Mike Salvino was followed by the decision of cutting the price target on the shares. Caso also seemed concerned about a potential volatility in DXC stock price around current levels, notwithstanding current valuation levels.
According to Caso, investors are increasingly concerned as to whether the company would be able to boost organic growth without meaningfully reducing the EBITDA margin outlook. "We think under-investment by the prior CEO will make this effort challenging," the analyst noted.
DXC in upward trend: price may ascend as a result of having broken its lower Bollinger Band on June 20, 2025
DXC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 44 cases where DXC's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 01, 2025. You may want to consider a long position or call options on DXC as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DXC just turned positive on July 01, 2025. Looking at past instances where DXC's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
DXC moved above its 50-day moving average on July 01, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DXC advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 10-day moving average for DXC crossed bearishly below the 50-day moving average on June 24, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DXC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.903) is normal, around the industry mean (17.594). P/E Ratio (7.638) is within average values for comparable stocks, (51.381). DXC's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.692). DXC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.023). P/S Ratio (0.230) is also within normal values, averaging (13.440).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DXC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DXC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.
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General Information
a provider of technology consulting, outsourcing and support services
Industry InformationTechnologyServices
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