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Dell Technologies (DELL) Surges 11.2%: Is This an Indication of Further Gains?

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Dell Technologies (DELL - Free Report) shares ended the last trading session 11.2% higher at $149.16. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.8% gain over the past four weeks.

Dell is benefiting from strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications.

This computer and technology services provider is expected to post quarterly earnings of $1.20 per share in its upcoming report, which represents a year-over-year change of -8.4%. Revenues are expected to be $21.75 billion, up 4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Dell Technologies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DELL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Dell Technologies belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, C3.ai, Inc. (AI - Free Report) , closed the last trading session 1.3% higher at $26.59. Over the past month, AI has returned 28.1%.

For C3.ai, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.31. This represents a change of -138.5% from what the company reported a year ago. C3.ai currently has a Zacks Rank of #3 (Hold).


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