Schaeffer's 43rd Anniversary Stock Picks in 2024

How Dell Stock Gets The Job Done for Passive Investors

DELL is a great option for investors looking for low volatility

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The shares of Dell Technologies Inc. (NYSE:DELL) are down 3% to trade at $47.20 at last check, likely due to some broader market headwinds. The equity has been cooling down from a Feb. 10, all-time high of $61.53, and is now trading at its lowest level since July, after the 50-day moving average rejected its late March rally. Year-over-year, DELL is up 4.4%.

DELL 50 Day

Analysts are optimistic towards DELL, with nine of the 12 in question carrying a "buy" or better rating. Plus, the 12-month consensus target price of $63.69 is a 34.4% premium to current levels. 

The security could benefit from a shift in the options pits, however, which lean bearish. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.08, which sits in the top percentile of readings from the past 12 months, indicating short-term traders have rarely been more put-biased.

What's more, Dell Technologies stock boasts a Schaeffer's Volatility Scorecard (SVS) of 85 out of a 100. This means the shares tend to outperform said volatility expectations. 

The security also offers a dividend yield of 2.7%, with forward dividend of $1.32. Plus, Dell Technologies stock has an attractive valuation at a forward price-earnings ratio of 7.47, and a price-sales ratio 0.39.

The tech concern has produced a relatively healthy growth rate over the past few years, and is expected to continue doing so in the future. For 2023, Dell is expected to grow its revenues by 3.3%, and earnings by 7.9%. DELL is also estimated to grow revenues by 2%, and earnings by 7.5% for 2024.

Overall, the biggest issue with the company's fundamentals seems to be its balance sheet, which holds $10 billion in cash, and $27 billion in total debt. Nonetheless, Dell Technologies stock should be a relatively safe option for long-term investors looking for relatively low volatility, and a decent dividend yield.

 

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