INFS

DXC Technology’s Guidance Cut Highlights the Value of VBI

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Combining technical/momentum indicators with undervalued stocks can help you avoid value traps, and that’s exactly what the Valuentum Buying Index did with DXC Technology recently. The VBI helped us avoid a catastrophe. By Callum Turcan Shares of DXC Technology Inc (DXC) were shredded after its August 8 earnings report for the first quarter of FY2020 (period covers April 1 to June 30). Management issued out a guidance cut that signaled DXC Technology’s attempt to shift into new markets to offset weakness at its legacy businesses would be a steeper uphill climb than previously expected. The company sells a combination of legacy IT offerings (particularly in the realm of enterprise data application management) and more modern IT offerings that cater towards … Read more

DXC Technology Looks Super Cheap

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While DXC Technology is experiencing top-line pressure due to weakness at its legacy businesses, its digital growth trajectory continues to look promising. Very strong free cash flows and a modest dividend policy leave plenty of room for upside as it relates to future dividend increases, particularly if share buybacks are scaled back.  By Callum Turcan DXC Technology Company (DXC) can be quickly defined as an end-to-end IT services company that offers anything from cloud application and management services, analytics, and IT security services to traditional application management and maintenance offerings. The company seeks to enable enterprises to not only transition to the digital age but scale up their capabilities with the help of DXC Technology, a process aided by such … Read more