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Bull of the Day: Dell Technologies (DELL)

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Dell Technologies (DELL - Free Report) , a current Zacks Rank #1 (Strong Buy), provides information technology solutions. The company’s segments include Client Solutions, Enterprise Solutions Group, and Dell Software Group.

Analysts have raised their expectations among all timeframes, with the revisions trends particularly notable for its current and next fiscal years.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, the company resides within the Zacks Computers – IT Services industry, which is currently ranked in the top 22% of all Zacks industries. Roughly half of a stock’s movement can be attributed to its group, helping to clarify the importance of targeting industries with favorable current standings. 

Outside of its favorable industry standing and improved earnings outlooks, let’s take a closer look at a few other company characteristics.

Dell Technologies

Since touching their 2023 low in mid-March, DELL shares have been on a tear, adding more than 90% in value and widely outperforming relative to the general market. Shares have been boosted by better-than-expected results post-earnings in back-to-back releases.

Zacks Investment Research
Image Source: Zacks Investment Research

Regarding the most recent release, Dell Technologies posted a sizable 53% EPS beat relative to the Zacks Consensus Estimate, with revenue also positively surprising by more than 10%. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

For those seeking income while simultaneously getting exposure to the technology sector, DELL shares provide precisely that. Currently, shares yield a solid 2.2% annually paired with a sustainable payout ratio sitting at 24% of the company’s earnings.

The company is expected to reveal its next quarterly release on November 30th. Currently, the Zacks Consensus EPS Estimate of $1.47 suggests a 35% pullback from the year-ago period, with the estimate up more than 8% since mid-August.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, our consensus revenue estimate for the upcoming release stands at $22.9 billion, representing a decrease of 7% from the same period last year. The consensus estimate has moved 7% higher since mid-August, again reflecting optimism among analysts.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Dell Technologies (DELL - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).


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