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Dell Technologies Inc. (DELL) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Dell Technologies (DELL - Free Report) ? Shares have been on the move with the stock up 8.4% over the past month. The stock hit a new 52-week high of $84.92 in the previous session. Dell Technologies has gained 9.4% since the start of the year compared to the 62.6% move for the Zacks Computer and Technology sector and the 46.8% return for the Zacks Computers - IT Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 30, 2023, Dell Technologies reported EPS of $1.88 versus consensus estimate of $1.47.
For the current fiscal year, Dell Technologies is expected to post earnings of $6.66 per share on $88.28 billion in revenues. This represents a -12.48% change in EPS on a -13.7% change in revenues. For the next fiscal year, the company is expected to earn $7.04 per share on $93.3 billion in revenues. This represents a year-over-year change of 5.74% and 5.68%, respectively.
Valuation Metrics
Dell Technologies may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Dell Technologies has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 27.4X. On a trailing cash flow basis, the stock currently trades at 7.4X versus its peer group's average of 12.6X. Additionally, the stock has a PEG ratio of 1.05. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Dell Technologies currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Dell Technologies passes the test. Thus, it seems as though Dell Technologies shares could still be poised for more gains ahead.
How Does DELL Stack Up to the Competition?
Shares of DELL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Vertiv Holdings Co. (VRT - Free Report) . VRT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Vertiv Holdings Co. beat our consensus estimate by 18.18%, and for the current fiscal year, VRT is expected to post earnings of $2.22 per share on revenue of $6.89 billion.
Shares of Vertiv Holdings Co. have gained 8% over the past month, and currently trade at a forward P/E of 23.78X and a P/CF of 38.98X.
The Computers - IT Services industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DELL and VRT, even beyond their own solid fundamental situation.
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Dell Technologies Inc. (DELL) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Dell Technologies (DELL - Free Report) ? Shares have been on the move with the stock up 8.4% over the past month. The stock hit a new 52-week high of $84.92 in the previous session. Dell Technologies has gained 9.4% since the start of the year compared to the 62.6% move for the Zacks Computer and Technology sector and the 46.8% return for the Zacks Computers - IT Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 30, 2023, Dell Technologies reported EPS of $1.88 versus consensus estimate of $1.47.
For the current fiscal year, Dell Technologies is expected to post earnings of $6.66 per share on $88.28 billion in revenues. This represents a -12.48% change in EPS on a -13.7% change in revenues. For the next fiscal year, the company is expected to earn $7.04 per share on $93.3 billion in revenues. This represents a year-over-year change of 5.74% and 5.68%, respectively.
Valuation Metrics
Dell Technologies may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Dell Technologies has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 27.4X. On a trailing cash flow basis, the stock currently trades at 7.4X versus its peer group's average of 12.6X. Additionally, the stock has a PEG ratio of 1.05. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Dell Technologies currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Dell Technologies passes the test. Thus, it seems as though Dell Technologies shares could still be poised for more gains ahead.
How Does DELL Stack Up to the Competition?
Shares of DELL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Vertiv Holdings Co. (VRT - Free Report) . VRT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Vertiv Holdings Co. beat our consensus estimate by 18.18%, and for the current fiscal year, VRT is expected to post earnings of $2.22 per share on revenue of $6.89 billion.
Shares of Vertiv Holdings Co. have gained 8% over the past month, and currently trade at a forward P/E of 23.78X and a P/CF of 38.98X.
The Computers - IT Services industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DELL and VRT, even beyond their own solid fundamental situation.