Dell Technologies is entering a price consolidation phase

Dell Technologies (NYSE:DELL) is a strong buy, according to Zacks Research. That recommendation is supported by A-rating on value and growth investing styles. We think that the company is entering a consolidation period for prices between $45 and $52. Investors should trade within this range.

Dell Technologies has a forward EPS of $7.53. The growth rate for EPS is at 12%. Last year’s EPS was $6.22. Backed by the strong earnings, the company has a dividend yield of 2.63%. 

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Dell is attractive for a number of reasons. The low PE of 6.71 and the PEG ratio of 0.59 indicate the stock is potentially undervalued. Lower-than-market risk makes the stock attractive in a bear market. Investors are interested in stocks that can withstand the bear market. Additionally, fundamentals indicate that the price should be rising to levels above $60.

Dell Technologies just turned bullish but gains are limited

Dell Technologies is trading at $50.25. The price is bullish as indicated by the MACD and RSI. Slightly over a month ago, the stock hit the bottom of $38. After retracing the value to $50, the company has remained within the range of $45 to $52. The stock appears to face resistance at $52 and support at $45. Our analysis shows that the stock is unlikely to rise significantly above $50. Instead, the stock will consolidate between the prices of $45 and $52 for the rest of the year.

Summary

We recommend buying and holding Dell Technologies for the bear market. The price is expected to remain stable, and the company pays regular dividends. The PE and PEG ratios indicate that Dell is undervalued.

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