3 Undervalued IT Services Stocks for Monday, August 24
Discover the top 3 undervalued IT Services stocks for Monday, August 24 based on AAII’s Stock Grades.Michael Rose
A+ Stock Grade Summary:
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COMPANY SUMMARY
DXC Technology Company, together with its subsidiaries, provides information technology services and solutions in the United States, the United Kingdom, the Rest of Europe, Australia, and internationally. It operates through three segments: Consulting & Engineering Services, Global Infrastructure Services, and Insurance Software & Services. The Consulting & Engineering Services segment delivers software engineering, consulting, and custom and enterprise application solutions; focusing on AI and data analytics to enhance operations and support digital transformation across industries such as finance, automotive, manufacturing, healthcare, life sciences, travel, and the public sector. The Global Infrastructure Services segment provides design, migration, and management of data center, mainframe, cloud, and network environments. This segment also provides cross-industry business process services, which streamline clients’ core enterprise functions such as finance, HR, procurement, and customer service. The Insurance Software & Services segment offers software and business process services for life and wealth, property and casualty, and reinsurance providers to modernize and digitally transform their operations. The company markets and sells its products through a direct sales force to commercial businesses and public sector enterprises. DXC Technology Company has a multi-year global alliance with Anthropic to bring AI into mission-critical enterprise systems; and strategic partnership with ElevenLabs to accelerate AI-first transformation strategy by embedding advanced voice AI capabilities across its internal operations and customer solutions. DXC Technology Company was founded in 1959 and is headquartered in Ashburn, Virginia.
Commentary & Analysis
Why DXC Technology Company’s (DXC) Stock Is Up 6.62%
As of Wednesday, August 19, DXC Technology Company’s DXC share price has surged by 6.62%, which has investors questioning if this is right time to sell.Jenna Brashear
Is DXC Technology Company (DXC) Overvalued?
We dive into why DXC Technology Company (DXC) could be considered overvalued on 2026-08-06, based on AAII’s Value Score and Grade.Michael Rose
Why DXC Technology Company’s (DXC) Stock Is Down 7.35%
As of Thursday, July 30, DXC Technology Company’s DXC share price has dipped by 7.35%, which has investors questioning if this is right time to buy.Michael Rose
What You Need to Know About DXC Technology Company's Q2 Earnings
DXC Technology Company's fiscal Q2 earnings report was released on Thursday, July 30. Let's dive in to see if (DXC) missed or beat analyst's expectations.Michael Rose
Financial Summary
| Share Statistics | DXC | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $1,819.9 | $822.0 | 53% |
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| Shares Out (Mil) | 166.3 | 45.0 | 73% |
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| Institutional Ownership | 98.6% | 74.1% | 80% |
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| Float (Mil) | 157.1 | 40.1 | 70% |
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| Beta | 0.80 | 0.92 | 48% |
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| Avg Daily Volume (000s) | 2,261 | 705 | 85% |
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| Price Change (52-week) |
(19.9%) | 53.3% | 32% |
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| Growth | DXC | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | (6.5%) | 8.3% | 7% |
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| Net Income (5yr) | 16.2% | 4.8% | 66% |
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| EPS (5yr) | 16.8% | 10.8% | 61 |
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| Dividends (5yr) | 0.0% | 0.0% | 0% |
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| Cash Flow (5yr) | 33.2% | (16.0%) | 88% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 8 | 8 | 7 | |
| Current EPS | $0.550 | $2.592 | $2.958 | |
| Month Ago EPS | $0.550 | $2.592 | $2.958 | |
| # Rev Up | 0 | 2 | 0 | |
| # Rev Down | 1 | 2 | 1 | |
| Three Months Ago EPS | $0.712 | $2.568 | $3.077 | |
| Year/Year Chg | (24.7%) | 2,492% | 3,253% | |
| Financials | DXC | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $12,484 | $611 | 86% |
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| Net Income (TTM) (Mil) | $124 | ($1) | 63% |
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| EPS (TTM) | $0.727 | $0.000 | 57% |
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| Operating Cash Flow (TTM) (Mil) | $1,480 | $60 | 85% |
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| Net Cash Flow (TTM) (Mil) | $165 | $2 | 82% |
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| Long-Term Debt (Q1) (Mil) | $3,439 | $113 | 81% |
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| Enterprise Value (Q1) (Mil) | $4,194 | $1,147 | 60% |
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| Valuation | DXC | Industry Median |
Percentile (All Stocks) |
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| P/B | 0.60 | 2.20 | 10% |
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| P/E | 16.2 | 17.4 | 42% |
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| Dividend Yield | 0.0% | 0.0% | 0% |
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| PEG (5yr hist) | 1.0 | 1.6 | 45% |
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| Ratios | DXC | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 23.0% | 34.7% | 25% |
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| Net Margin | 1.0% | (0.1%) | 34% |
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| ROA | 0.9% | (0.4%) | 45% |
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| ROE | 4.0% | 3.8% | 42% |
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| Liabilities to Assets | 74.3% | 51.2% | 70% |
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| F-Score | 6 | 4 | 67% |
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Passing Stock Screens
As of 9/11/2026, from a list of 60 stock screening strategies,
FACTOR STRATEGY
Price-to-Free-Cash-Flow Screen
Factors: Value
An exploration of the basics of cash flow analysis and the implementation of a price-to-free-cash-flow screen.
| Performance Since Inception: | 16.6% |
| +/- S&P 500: | +9.1 |
