Dell stocks surge 90% this year as earnings report looms

In the United States, Dell Technologies is set to release its third-quarter financial results after the market close on November 26, 2024. Analysts anticipate a revenue of $24.65 billion, showing a significant increase from $22.25 billion in the same quarter last year. This positive outlook is buoyed by Dell’s consistent history of beating analyst revenue estimates in three consecutive quarters and eight out of the last ten. Additionally, expected earnings per share are pegged at $2.05, rising from $1.88 in the previous year. Investors are acutely focused on the company's guidance, as stated by Freedom Capital Markets Chief Global Strategist Jay Woods, indicating that the future outlook is critical to share performance. Over the past few months, Dell's stock has recovered after a notable decline three months ago. However, it is still below its peak values reached earlier in the year. Woods has remarked on the importance of observing the stock’s performance around the $120 to $125 range to ascertain the strength of its upward trend. A robust earnings report alongside good guidance could potentially propel Dell shares back to the all-time highs achieved in May. Recent analyst ratings suggest a positive sentiment around Dell’s stock. Notably, Evercore ISI has reiterated a strong performance outlook with a price target set at $150. Wells Fargo has also increased its price target from $140 to $160, while Morgan Stanley raised its target from $136 to $154. These revisions reflect confidence in Dell's potential grow th, particularly in sectors related to artificial intelligence, where demand for AI-optimized servers has been on the rise, registering a 23% increase quarter-over-quarter in the latest report. The AI-optimized server backlog was reported at $3.8 billion by the end of the second quarter. As the tech sector continues evolving, the performance of key segments like the Client Solutions Group, despite a slight year-over-year decline, could play a significant role in figures that are being measured. With Ellen’s shares showing impressive growth of nearly 92.8% year-to-date in 2024, the market is undoubtedly eager for upcoming results and how they will steer the company's course for the remainder of the fiscal year.