Dell stock forecast after exceeding analyst expectations
- 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.
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Dell looks undervalued
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.
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.
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.