Dell (DELL, $51.53) beats Q2 estimates, on strong enterprise demand for its PCs
Dell Technologies Inc.’s second quarter earnings came in higher than expected.
The maker of computers and software reported second quarter non-GAAP earnings of $2.15 a share, surpassing analysts’ expectations of $1.47 a share.
Revenue rose +2% year-over-year to reach $23.4 billion in the quarter, also beating the Street estimate of $23.27 billion.
Vice chairman Jeff Clarke emphasized that IT spending remained healthy.
The quarter saw exceptionally strong performance in Dell’s PC segment. Revenue from its PC unit surged +6% from the year-ago quarter to $11.7 billion. Commercial/enterprise revenue soared +12% year-over-year to $9.1 billion in the second quarter. Consumer revenue fell -12%, but that was cushioned by enterprise market – since the latter makes up the larger part of the company’s total PC business.
However, Dell’s storage revenue was flat, while servers and networking sales declined -12%.
DELL in +2.48% Uptrend, rising for three consecutive days on November 30, 2023
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where DELL advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
DELL moved above its 50-day moving average on October 27, 2023 date and that indicates a change from a downward trend to an upward trend.
The Aroon Indicator entered an Uptrend today. In of 343 cases where DELL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DELL moved out of overbought territory on December 01, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Momentum Indicator moved below the 0 level on December 01, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DELL as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DELL turned negative on December 01, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DELL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DELL broke above its upper Bollinger Band on November 30, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.390) is normal, around the industry mean (4.467). P/E Ratio (28.490) is within average values for comparable stocks, (60.497). Projected Growth (PEG Ratio) (10.988) is also within normal values, averaging (57.090). DELL has a moderately low Dividend Yield (0.020) as compared to the industry average of (0.036). P/S Ratio (0.583) is also within normal values, averaging (9.813).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DELL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DELL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a developer of computers and related products and services
Industry ComputerPeripherals
DELL and
Correlation & Price change
A.I.dvisor indicates that over the last year, DELL has been loosely correlated with HPQ. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if DELL jumps, then HPQ could also see price increases.
| Ticker / NAME | Correlation To DELL | 1D Price Change % | ||
|---|---|---|---|---|
| DELL | 100% | -5.19% | ||
| HPQ - DELL | 61% Loosely correlated | +0.55% | ||
| NTAP - DELL | 43% Loosely correlated | -0.12% | ||
| WDC - DELL | 40% Loosely correlated | +0.17% | ||
| STX - DELL | 39% Loosely correlated | +0.10% | ||
| PSTG - DELL | 34% Loosely correlated | -0.48% | ||
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