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 sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for DXC moved above the 200-day moving average on October 08, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DXC advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 193 cases where DXC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 66 cases where DXC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on October 22, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DXC as a result. In of 101 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DXC turned negative on October 23, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
DXC moved below its 50-day moving average on October 22, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DXC crossed bearishly below the 50-day moving average on October 23, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 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 .
DXC broke above its upper Bollinger Band on October 17, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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 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 (1.316) is normal, around the industry mean (11.156). P/E Ratio (48.256) is within average values for comparable stocks, (47.102). DXC's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.602). DXC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.024). P/S Ratio (0.295) is also within normal values, averaging (44.977).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 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 79, placing this stock worse than average.
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General Information
a provider of technology consulting, outsourcing and support services
Industry InformationTechnologyServices