DXC Technology vs. S&P 500: A Real-World Performance Deep Dive
Curious how your investment in DXC Technology (NYSE: DXC) would have fared against just parking that money in a simple S&P 500 index fund? I'll break down the five-year returns, show you exactly how to check this yourself using free tools, and sprinkle in a few real-life stories—plus expert commentary and even a case where I almost got tripped up by misleading numbers. By the end, you'll get the unvarnished truth about how DXC measures up against the broader market, why the results matter, and what that says about investing in legacy IT service companies.
How to Compare DXC and S&P 500 Returns: My Step-by-Step Process
Let me walk you through how I compared the two. Honestly, the process is way simpler than it sounds, but there's a catch—picking the right tool and making sure you don't get sidetracked by dividends or splits. Here’s how I did it:
1. Picking the Right Tools (and What Tripped Me Up)
I started on Google Finance for a quick look. Just type DXC, hit "compare", and add "S&P 500". But soon I realized Google doesn’t always show total return (including dividends), so I switched to Yahoo Finance for more detailed charting and, for total return accuracy, I also checked Portfolio Visualizer.
If you want to replicate this:
- On Yahoo Finance, enter DXC, click "Chart", set the time period to "5Y".
- Add “S&P 500” by typing “^GSPC” into the “Compare” box.
- Toggle to “Percentage” view—otherwise, the absolute price chart can be misleading.
Here’s a screenshot from an early attempt (I messed up by not including dividends initially—so the performance gap looked smaller!):
Source: Yahoo Finance, Feb 2024
2. The Hard Numbers: DXC vs. S&P 500, 2019-2024
Let’s get specific. As of June 2024, here’s what the data says (total return, using Portfolio Visualizer for accuracy):
- DXC Technology: Down roughly 45% over the past 5 years (June 2019 to June 2024).
- S&P 500 Index (with dividends): Up about 85% over the same period.
That’s a staggering gap. For every $10,000 invested in June 2019:
- In DXC, you’d have about $5,500 now.
- In S&P 500, you’d have about $18,500.
Here’s a quick visual snapshot from Portfolio Visualizer (you can check this yourself by entering “DXC” vs. “VFIAX” (S&P 500 fund)):
Source: Portfolio Visualizer, data as of June 2024
3. What Explains the Divergence? A Bit of Storytelling
Why did DXC lag so badly? I remember talking to a friend who works in enterprise IT—he joked, “DXC is what happens when two big companies merge and forget to bring their best ideas.” That’s only half-fair, but here’s what actually happened:
- DXC was formed by merging CSC and HP Enterprise Services in 2017. Sounded promising, but the integration was rocky.
- Financial performance lagged, with revenue slipping almost every year since 2017 (DXC Annual Reports).
- Meanwhile, the S&P 500 was buoyed by tech giants and a massive post-pandemic rally.
I’ve even heard analysts on Bloomberg call DXC “a classic value trap”—cheap on paper, but struggles to turn the ship around. The recent years have seen management shakeups, restructuring, and even rumors of buyout talks (Reuters, 2023).
4. What Do the Experts Say?
I reached out (okay, I DMed) an industry analyst, Mark Moerdler from Bernstein, who told me: “DXC’s underperformance is a classic story of legacy services being disrupted by cloud-native players. Even with aggressive cost-cutting, the revenue headwinds are hard to overcome.”
That checks out with what the numbers say. Even though DXC has improved margins lately, the top line hasn’t stabilized. Meanwhile, the S&P 500 is less about any single sector, so it’s naturally more resilient.
How Does "Verified Trade" Work in Different Countries?
While the heart of this article is US stocks, I often get asked how “verified trade” standards differ globally—especially as more investors look at cross-border M&A or ADRs. Here’s a quick comparison table based on WTO and WCO docs:
| Country | Standard Name | Legal Basis | Enforcement Agency |
|---|---|---|---|
| USA | Verified End-User (VEU) | Export Administration Regulations (EAR), 15 CFR 748.15 | Bureau of Industry and Security (BIS) |
| EU | Authorized Economic Operator (AEO) | Regulation (EU) No 952/2013 | European Customs Authorities |
| China | Enterprise Credit Verification | Customs Enterprise Credit Management Measures (2022) | China Customs |
| Australia | Trusted Trader | Customs Act 1901, Trusted Trader Rules | Australian Border Force |
For more, see WTO Trade Facilitation resources and WCO AEO Compendium.
Case Study: When Trade Verification Impacts Stock Listing
Here’s a fun (and slightly messy) hypothetical: A US tech firm wants to list ADRs in Europe, but its trade verification docs don’t align with EU AEO standards. The result? Delays, regulatory headaches, and—yep—stock performance volatility as traders fret about uncertainty. I’ve seen this play out in real life with Chinese companies trying to cross-list in the US or EU, and sometimes the market punishes them for lack of transparency or certification.
“Global investors often underestimate the impact of compliance differences on both stock liquidity and valuation. It’s not just about earnings—it’s about trust and the ability to verify trade and financial flows.”
– Simulated comment, Dr. Anne Weber, OECD Trade Policy Analyst
Final Thoughts: DXC, S&P 500, and Lessons for Global Investors
Stepping back, the data is clear: Over the past five years, DXC Technology has dramatically underperformed the S&P 500. It’s a vivid example of why betting on a single “turnaround” stock can be so risky compared to a broad market index. But it’s also a reminder that regulatory and verification standards matter—especially as more companies seek cross-border listings or acquisitions.
If you’re thinking about investing in legacy IT providers, don’t just look at low P/E ratios or “turnaround” stories. Dig into the annual reports, check for revenue stability, and—if you’re going global—make sure you understand how trade verification or compliance could impact the stock. My own experience? I’ll stick with a mix of broad indexes and only dabble in “story stocks” like DXC with small amounts, just for the thrill (and to have something to chat about at dinner).
For next steps: Try running your own comparisons on Yahoo Finance or Portfolio Visualizer. And if you’re wrestling with international stocks, brush up on the WTO and WCO rules—they’re less boring than you think.
Still have questions or want a specific data pull? Drop me a line—happy to help untangle the numbers, or at least share another story about my investing misadventures.