We recently published a list of Top 10 Stocks on Analysts’ Radar These Days. In this article, we are going to take a look at where Dell Technologies Inc (NYSE:DELL) stands against other top stocks on analysts’ radar these days.
Fundstrat’s Tom Lee said in a recent program on CNBC that he is still optimistic about the stock market despite recent selloffs. Here is how he explained some of the reasons behind his rationale:
“I can understand why investors are sitting on their hands. I mean, they don’t really know how severe these tariffs are going to be or how long they’ll last. But now we’re seeing a big price correction and a decline in sentiment. Then something like today happens—we get a bad ADP jobs report, and the market is actually up. So we’re rising on bad news, which is a good sign that a lot of bad news is already priced in.”
Lee believes the market’s near-term bottom is close as he talked about the importance of staying invested during the “best days.”
“In my mind, we put out a piece yesterday just talking about the 10 best days that happen every year. Last year, for instance, the 10 best days added up to 21 percentage points of the S&P. Without those 10 days, the market was only up 4%. So, you know, you don’t get 20% years because it’s good throughout the year—it’s just the 10 best days. I think the setup for a 10 best day is near because if the economy’s near stall speed, I think people realize the Trump put does come back because otherwise it has to unwind all this austerity. And if the job market’s soft, the Fed put comes back into play because the Fed doesn’t want to deal with stall speed.I think that’s what’s going to be the positive catalyst in the next couple of weeks. On top of that, we already know stocks will bottom before bad news peaks. So if we’re seeing the market not fade on bad news, it means we’ve already priced in a lot of things that would normally scare us.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks currently trending on the latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Funds Investors: 60
Jim Kelleher from Argus said in a latest program on Schwab Network that Dell Technologies Inc (NYSE:DELL) AI catalysts are growing.
“Their participation in the AI server business—that’s really servers, racks, networking—doesn’t include their storage business. They are the biggest storage company in the world, and storage is a lagging indicator. I think they could get a minimum of 1 billion. They’re going to do about 18 billion in storage revenue this year, and you know, low single-digit percentage of that’s going to be AI. That’s going to grow over time, and eventually, AI will drive a lot of storage revenue. They’re really one of the leaders in the AI PCs. They have a unique model. They look like the old Hewlett-Packard in that they have both infrastructure for enterprise and a PC business, along with a peripherals business. So, they can bundle that. They’re very focused on commercial PCs, and that lends itself to the AI PC market. So, their overall AI exposure is bigger than the 15 billion I would say, and it’s kind of growing. So, there are positives in the story.”
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.”
Overall, DELL ranks 7th on our list of top stocks on analysts’ radar these days. While we acknowledge the potential of DELL as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DELL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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