8 Best Cheap Growth Stocks To Invest In Now

2. Dell Technologies Inc. (NYSE:DELL)

Forward P/E Ratio: 15.29

Earnings Growth This Year: 10.20%   

Number of Hedge Fund Holders: 88

Dell Technologies Inc. (NYSE:DELL) is a leading technology company that develops and sells computer technologies and software. Its technologies are being used in high-growth industries such as artificial intelligence, data analytics, and cloud computing. This transformation has put the company on the list of emerging AI companies.

The company has been doing great in terms of generating revenue. During the second quarter of 2024, Dell Technologies Inc. (NYSE:DELL) was able to improve its revenue by 9% mainly due to the increase in demand for its AI servers.

In addition, the Infrastructure Solutions Group (ISG), which deals with the AI servers was the top story for the company. The segment revenue of ISG improved 38% year-over-year to reach a record high of $11.6 billion. The revenue growth was all because of an 80% increase in server revenue indicating how big the server segment is for the company.

Dell Technologies Inc. (NYSE:DELL) is also cheap at current levels. It is trading at only 15 times its forward earnings making it one of the best cheap growth stocks to invest in now.

Carillon Scout Mid Cap Fund stated the following regarding Dell Technologies Inc. (NYSE:DELL) in its Q2 2024 investor letter:

“Dell Technologies Inc. (NYSE:DELL) was a top contributor despite reporting disappointing first-quarter earnings results, because investors looked through the near-term disappointment and expected strong growth from AI-related servers and personal computers. We expect Dell to participate in the growth of artificial intelligence hardware, especially as enterprises invest more aggressively. We like the company’s depth and breadth of products and services, as well as its focus on keeping costs low.”