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.
Dell looks undervalued
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
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.
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.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- bitFlyer, simple, easy to use and regulated. Register here >
