Dell stock forecast after exceeding analyst expectations

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Nov 24, 2021
  • Dell stock on Wednesday spiked more than 5% after reporting its fiscal Q3 results.
  • The company announced its most recent quarterly results Tuesday after markets closed, beating estimates.
  • The stock trades at exciting valuation multiples whilst offering decent growth prospects.

On Wednesday, Dell Technologies Inc. (NYSE:DELL) shares rallied more than 5% after announcing its most recent quarterly results. The company reported its fiscal third-quarter revenue and earnings Tuesday after markets closed, beating analyst expectations.

The company posted fiscal Q3 non-GAAP EPS of $2.37, beating expectations by $0.07. In addition, its GAAP EPS of $4.87 was higher than the consensus Street estimate of $0.99, while revenue grew by more than 20% from last year to $28.39 billion, surpassing estimates by $1.06 billion.

Dell looks undervalued 

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From an investment perspective, Dell shares trade at compelling trailing 12-months and forward P/E ratios of 6.64 and 4.51, respectively, making it an attractive option for value investors. 

The stock also offers long-term earnings growth prospects of about 13.30%, thus gaining the attention of growth investors. 

Source – TradingView

Technically, Dell shares seem to be trading within an ascending channel formation in the intraday chart. As a result, the stock recently spiked to trade closer to the trendline resistance, creating an opportunity for a technical pullback.

However, with shares far from reaching overbought conditions, investors could target extended gains at about $59.58, or higher at $61.89, while $54.64 and $52.01 are crucial support zones.

Conclusion 

In summary, although Dell shares are up nearly 100% this year, the stock still trades at attractive valuation multiples whilst offering decent growth prospects.

Therefore, the current rally could continue for the foreseeable future.

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