Wall Street analysts are optimistic about Dell Technologies, suggesting it may be a good investment opportunity for buyers.
Let’s dive into what these analysts think about Dell. Right now, the average brokerage recommendation for Dell Technologies is 1.38 on a scale from 1 to 5, where 1 is a strong buy. That’s pretty solid, right? Out of 20 firms, 15 say it’s a strong buy, and 2 say it’s just a buy. That’s a whopping 75% leaning towards strong buy!
But hold on a second. Just because they’re saying buy doesn’t mean you should jump in without thinking. Studies show that these recommendations don’t always lead to the best stock picks. Why? Well, brokerage firms often have their own interests at heart, which can skew their ratings. They tend to give way more strong buys than sells, which can mislead regular investors.
Now, if you’re looking for a more reliable indicator, check out the Zacks Rank. It’s a tool that uses earnings estimate revisions to predict stock performance. It’s been shown to be a better gauge of how a stock might do in the near future.
For Dell, the Zacks Consensus Estimate for this year is holding steady at $7.82. That means analysts aren’t changing their minds about its earnings potential. This could mean Dell will perform similarly to the market soon. Right now, it has a Zacks Rank of 3, which is a hold. So, while the buy recommendations are nice, it might be wise to tread carefully before investing in Dell Technologies.
