Jim Cramer argued the stock of DXC Technology (DXC) is cheap, which is a rarity in this market, so we had a look. The first thing to notice is that growth is rather erratic:
The acceleration you see this year is the result of the merger between what they used to be (CSC) and the enterprise service business from HP (HPE) that gave rise to the company in its present form, which closed on April 3 of this year.
This distorts the picture quite considerably. Excluding PPA (purchase price accounting), revenue was down 4.2% year-over-year in constant currency and flat sequentially, but this is comparing with Q1 2016 on a pro-forma basis (as if the merger took place on April 2, 2016).
