At US$76.68, Is It Time To Put Dell Technologies Inc. (NYSE:DELL) On Your Watch List?

Dell Technologies Inc. -2.96%

Dell Technologies Inc.

DELL

114.87

-2.96%

Dell Technologies Inc. (NYSE:DELL) saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The company's trading levels have approached the yearly peak, following the recent bounce in the share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Dell Technologies’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Dell Technologies

What Is Dell Technologies Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 3.0% below our intrinsic value, which means if you buy Dell Technologies today, you’d be paying a fair price for it. And if you believe that the stock is really worth $79.03, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Dell Technologies’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Dell Technologies?

earnings-and-revenue-growth
NYSE:DELL Earnings and Revenue Growth December 29th 2023

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted profit growth of 4.8% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Dell Technologies, at least in the short term.

What This Means For You

Are you a shareholder? It seems like the market has already priced in DELL’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on DELL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Dell Technologies as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 3 warning signs for Dell Technologies you should be aware of.

If you are no longer interested in Dell Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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