Dell Stock: Headed to $43?
Despite the tech-heavy Nasdaq Composite's nice 12.5% year-to-date gain this year, shares of computer company Dell Technologies (NYSE: DELL) have floundered. The stock is down more than 3% since the start of the year. Even worse, that adds to the stock's 29% decline last year. But now is not the time for investors to run away from this stock, according to one analyst. On the contrary, Goldman Sachs analyst Michael Ng thinks shares are a buy today.
Here's why this analyst may be right.
Though Dell's business is cyclical, Ng thinks the worst of the company's cyclical downtrend may soon be over. Furthermore, the analyst believes that the stock's cheap valuation has priced in tough times, anyway. As of this writing, the stock trades at less than 12 times earnings. Even more, the stock trades at just 8.3 times analysts' average forecast for adjusted earnings per share over the next 12 months.
Source Fool.com
