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Dell Technologies Stock: RS Rating Lift Signals Market Momentum

Eli GrantTuesday, Dec 24, 2024 3:22 pm ET
4min read


Dell Technologies Inc. (DELL) has recently seen a boost in its Relative Strength (RS) Rating, jumping from 80 to 84. This upgrade signals improving technical performance and could indicate a potential shift in market sentiment for the company's stock. In this article, we will explore the factors driving Dell's RS Rating improvement and analyze how this development may influence analysts' recommendations and price targets.

Dell Technologies' RS Rating upgrade is a positive sign for investors, as it suggests that the company's stock price behavior over the past 52 weeks has improved compared to other stocks in the database. This indicator is a key measure of market leadership, with scores above 80 often associated with the early stages of stock price moves. As Dell's RS Rating approaches the 90 threshold, it may attract more attention from investors and analysts, potentially leading to increased bullish sentiment and higher price targets.

One of the key factors driving Dell Technologies' recent stock performance is its strong earnings growth. In the third quarter of fiscal 2025, Dell reported a 16% year-over-year increase in diluted earnings per share, outpacing revenue growth. Additionally, the company's non-GAAP diluted earnings per share grew by 14% year over year, demonstrating robust financial performance. This earnings growth, coupled with a 10% year-over-year increase in revenue, has contributed to Dell's RS Rating improvement.

Another significant factor driving Dell's stock performance is its focus on artificial intelligence (AI) and edge computing. The company's NativeEdge edge software platform simplifies, secures, and optimizes edge deployments across diverse industries. This focus on high-growth markets has driven demand for Dell's products and services, contributing to its strong financial performance.

Dell Technologies' cash flow and profitability have also played a crucial role in its RS Rating improvement. The company's cash flow from operations was $1.6 billion in the third quarter of fiscal 2025, and it ended the quarter with $6.6 billion in cash and investments. This financial strength, combined with its robust earnings growth and strategic focus on AI and edge computing, has driven Dell Technologies' recent stock performance and RS Rating improvement.

As Dell Technologies' RS Rating continues to rise, analysts may revise their recommendations and price targets for the company's stock. The RS Rating upgrade signals improving technical performance, which could influence analysts' bullish sentiment and lead to higher price targets. However, investors should also consider other technical indicators and fundamentals when evaluating Dell Technologies' stock.

In conclusion, Dell Technologies' RS Rating upgrade from 80 to 84 signals improving technical performance and market momentum. The company's strong earnings growth, focus on AI and edge computing, and robust cash flow have contributed to its recent stock performance. As Dell's RS Rating continues to rise, analysts may revise their recommendations and price targets, potentially leading to increased bullish sentiment and higher price targets for the company's stock. Investors should stay informed about Dell Technologies' developments and consider the company's fundamentals when making investment decisions.


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