DXC Technology shares were losing more than -31% in trading Friday, following news that the company’s second quarter earnings missed estimates, margins fell from the year-ago period, and the company’s outlook that full-year earnings would fall heavily short of Wall Street estimates.
The information tech company reported adjusted earnings from continuing operations of $1.74 a share in the first fiscal quarter 2020, lower than the year-ago quarter’s $1.93. The EPS also fell below Wall Street analysts’ estimates of $1.71 a share.
What’s more, adjusted earnings before interest and taxes (EBIT) as a percentage of revenue was 13.3% in the quarter, substantially down from 15.2% a year ago.
CEO Mike Lawrie said the company is expecting adjusted earnings per share for the full year to be in the range of $7 to $7.75, far below the average Wall Street estimate of $8.20 for the year.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where DXC declined for three days, in of 276 cases, the price declined further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on September 26, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DXC as a result. In of 96 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 RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DXC's RSI Indicator exited the oversold zone, of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where DXC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DXC just turned positive on August 23, 2023. Looking at past instances where DXC's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DXC advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
DXC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 214 cases where DXC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend 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 (1.283) is normal, around the industry mean (3.960). P/E Ratio (8.278) is within average values for comparable stocks, (45.920). DXC's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.389). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (0.323) is also within normal values, averaging (7.183).
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 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 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 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of technology consulting, outsourcing and support services
|ETFs / NAME||Price $||Chg $||Chg %|
|MicroSectors™ Travel -3X Inv Lvgd ETNs|
|Invesco S&P 500® Downside Hedged ETF|
|Dimensional US High Profitability ETF|
|Putnam Focused Large Cap Growth ETF|
|Templeton Global Income Fund (Delaware)|
A.I.dvisor indicates that over the last year, DXC has been loosely correlated with CLVT. These tickers have moved in lockstep 60% of the time. This A.I.-generated data suggests there is some statistical probability that if DXC jumps, then CLVT could also see price increases.