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Founded in 1984, the Round Rock, Texas-based Dell Technologies Inc. (DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas and internationally. With a market cap of $64.4 billion, the company operates in two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and CHRW perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the computer hardware industry. DELL benefits from being one of the top suppliers of computer hardware and portable machines all over the world.
But it’s not all sunshine and rainbows for DELL. It is currently trading nearly 47% below its 52-week high of $179.70, reached on May 29 last year. Shares of DELL have dwindled 18.2% over the past three months, underperforming the Technology Select Sector SPDR Fund’s (XLK) 9.7% decline during the same time frame.
Looking at the broader trend, DELL has declined 16% over the past year, underperforming XLK’s 5.6% decline. In the past six months, DELL has dropped 19.5%, falling behind XLK’s 1.3% loss.
Technically, the stock remains in a downtrend, having traded below its 50-day moving average since February end and under its 200-day moving average since early January.
DELL shares dropped 6.8% following its Q4 earnings release on Feb. 27. The company reported a 7% growth in its revenue, which amounted to $23.9 billion, with strong prospects for the company to develop its AI offerings. The company’s EPS amounted to $2.42, surpassing the Wall Street estimates by 4.8%.
Its rival, HP Inc. (HPQ), is in the same boat as DELL, with its shares declining 20.8% over the past six months and 5.7% over the past 52 weeks.
Wall Street analysts are strongly bullish on DELL’s prospects. The stock has a consensus “Strong Buy” rating from the 21 analysts covering it, and the mean price target of $137.64 suggests a potential upside of 44.4% from current price levels.
