DXC Technology (DXC) Upgraded to Buy: What Does It Mean for the Stock?

Core Viewpoint - DXC Technology Company has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for DXC Technology indicate an improvement in the company's underlying business, suggesting potential for stock price appreciation [5][10]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - The upgrade of DXC Technology to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for DXC Technology - For the fiscal year ending March 2026, DXC Technology is expected to earn $3.14 per share, with a 3.3% increase in the Zacks Consensus Estimate over the past three months [8].