Dell is a strong buy at $50 as the price turns to a support level

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on Jun 10, 2022
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  • Dell is undervalued with the PEG ratio at 0.60
  • The stock triggered a buy signal as MACD intersects the signal
  • We strongly recommend buying Dell and set the price target at $80

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Dell Technologies Inc. (NYSE:DELL) is the latest addition to the list of strong buys. The value stock is trading at $50.35. Within three weeks, the stock has risen from a valuation of $40. This bullish momentum is projected to continue. Both fundamental and technical indicators are strong.

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Dell has an EPS of $7.53. The projected annual growth in EPS is 12%. Forward PE is recorded at 6.89. The company’s dividend yield is 2.62%. The most notable indicator, however, is the strong ROE of 722%. The features make Dell attractive.

One of the most important indicators considered here is the PEG ratio. It captures the impacts of earnings and expected growth. At 0.60, the PEG ratio indicates that Dell is undervalued. We project that the stock could rise to $80. 

Dell turns bullish as MACD intersects the signal

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Source – TradingView

Technical analysis shows that Dell is affirming support at $50. The stock is likely to appreciate from this level. If the stock succeeds in pivoting at $50, it will move to retrace the $60 valuation. It would then breach the resistance to find a new high. The price movement is not only possible but probable.

Momentum indicators show that Dell is bullish. At $50, the MACD just interacted with the signal at -1.67. The interaction sets off an important buying signal with bullish prospects. The RSI at 49.83 shows that the stock has a lot of momentum left to drive the valuation higher.

Summary

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We strongly recommend buying Dell Technologies. Fundamental analysis shows the valuation could rise above $80. Technical indicators triggered a buy signal with bullish prospects.

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