Stock of the Day

Dell Technologies (DELL)

$117.66

-$2.23 (-1.9%)

Market Cap: $82.37B

About Dell Technologies

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally.

The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; software and peripherals; and consulting, support, and deployment services. The CSG segment provides desktops, workstations, and notebooks; displays, docking stations, keyboards, mice, webcam, and audio devices; and third-party software and peripherals, as well as configuration, support and deployment, and extended warranty services. It is involved in cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats; originating, collecting, and servicing customer financing arrangements; and the resale of VMware products and services. The company serves enterprises, public institutions, and small and medium-sized businesses through its direct sales channel, value-added resellers, system integrators, distributors, and retailers. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.

Dell Technologies Bull Case

Here are some ways that investors could benefit from investing in Dell Technologies Inc.:

• The company reported a strong quarterly earnings result with an EPS of $2.15, surpassing the consensus estimate of $1.83 by $0.32, indicating robust financial performance.
• With a market capitalization of $80.05 billion and a PE ratio of 20.19, Dell Technologies Inc. is positioned as a stable investment in the technology sector, suggesting it is reasonably valued compared to its earnings.
• The stock is currently trading at approximately $124.52, which is significantly below its 1-year high of $179.70, presenting a potential buying opportunity for investors looking for growth.
• The company has shown a year-over-year revenue increase of 9.5%, reflecting its ability to grow and adapt in a competitive market.
• Dell Technologies Inc. has a dividend yield of 1.56% with a payout ratio of 31.45%, indicating a commitment to returning value to shareholders while maintaining sufficient earnings for reinvestment.

Dell Technologies Bear Case

Investors should be bearish about investing in Dell Technologies Inc. for these reasons:

• The company has a negative return on equity of 191.91%, which may raise concerns about its profitability and efficiency in generating returns for shareholders.
• Insider transactions indicate a significant sell-off, with insiders selling 945,407 shares valued at over $115 million in the last quarter, which could signal a lack of confidence in the company's future performance.
• Despite the revenue growth, the reported revenue of $24.37 billion fell short of the consensus estimate of $24.67 billion, suggesting potential challenges in meeting market expectations.
• The stock's beta of 0.90 indicates lower volatility compared to the market, which may limit potential high returns for aggressive investors seeking growth.
• The company's dividend yield, while positive, may not be attractive enough for income-focused investors, especially in a rising interest rate environment.

Recent News

• Don't Miss This Dell Featured Deal with $300 Savings (msn.com)
• Dell Technologies price target lowered to $145 from $156 at Citi (markets.businessinsider.com)
• “I Think That Dell’s Going to Have a Good Quarter!” – Jim Cramer on Dell Technologies (DELL) (msn.com)
• 2 Artificial Intelligence (AI) Stocks to Watch in the Wake of DeepSeek's Breakthrough (fool.com)
• Analyst Bullish on Dell (DELL) Ahead of Earnings, Thinks Infrastructure Business ‘On Fire’ (msn.com)
• Nexus Venture Partners, Dell Technologies Capital Lead USD 10 Mn Round in Singulr AI (msn.com)
• Jim Cramer on Dell Technologies Inc. (DELL): ‘Dell Was Confident That The Margins Would Improve Later On’ (insidermonkey.com)
• Dell Technologies price target lowered to $150 from $155 at BofA (markets.businessinsider.com)
• Dell Tech Days: Big Savings on AI-Ready PCs and More (msn.com)
• Dell expected to provide lower guidance next week, but AI servers remain a big bright spot (marketwatch.com)