DXC Technology: Why It Is Still A Buy
DXC's turnaround plan is in play.
Margins set to expand.
Price target of over $40 discussed.
Strong Third-Quarter Results
DXC posted earnings of 84 cents a share as revenue fell 14.5% year-on-year to $4.29 billion. Both figures beat consensus estimates. Investors who bought the stock after the report did well so far. The stock is up by around 30% in the quarter. Still, the stock is undervalued, trading at a forward price-to-earnings ratio of 9.79 times.