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Dell Technologies Inc. (DELL), headquartered in Round Rock, Texas, with a market cap of $82.2 billion, is a global leader in technology solutions and services. Known for its innovative products and customer-centric approach, Dell empowers businesses worldwide by delivering cutting-edge computing, storage, networking, and cloud solutions tailored to diverse industries.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” a distinction Dell Technologies exemplifies through its prominent market presence and leadership in technology solutions. With its cutting-edge innovations and comprehensive portfolio, Dell empowers businesses across various industries by delivering seamless computing, storage, networking, and cloud solutions tailored to their unique needs.
Shares of Dell are currently trading 36.1% below their 52-week high of $179.70, reached on May 29. Over the past three months, the stock has declined 3.1%, significantly underperforming Technology Select Sector SPDR Fund’s (XLK) 3.9% gain during the same period.
Over the past six months, DELL has declined by 16.7% despite achieving a 50.1% gain over the past 52 weeks. Meanwhile, the XLK has increased by 3.6% in the last six months and 21.8% over the past year.
DELL's recent bearish trend is evident as the stock has been trading below its 50-day moving average since late November and its 200-day moving average since early December.
Shares of Dell Technologies dropped 12.3% the day after the company released its Q3 earnings report on Nov. 26. While revenue grew 10% year-over-year to $24.37 billion, it fell short of Wall Street's expectations of $24.56 billion. However, the company's profit of $2.15 per share rose 14% year-over-year, surpassing estimates of $2.06 per share.
Additionally, it reported robust performance in its Infrastructure Solutions Group (ISG), with revenue rising 34% year over year to $11.4 billion, driven by a 58% surge in servers and networking revenue, which reached $7.4 billion.
Highlighting the contrast in performance, rival HP Inc. (HPQ) has underperformed DELL, with an 8.4% gain over the 52 weeks.
Despite its recent weak price performance, analysts maintain a bullish outlook on Dell Technologies. The stock holds a consensus "Strong Buy" rating from 20 analysts, with a mean price target of $149.42, indicating a potential upside of 30.1% from its current level.
