Dell
Over the past 12 months, shares of Dell Technologies Inc. (NYSE: DELL) have shed about 8% from their price. So far in 2022, the shares are down 17.6%, but they have bounced back from a 52-week low posted in mid-May. Dell’s consumer business has suffered from lower demand, and the server business has been slow as well. But Dell’s revenue for the past 12 months is up 20%, and free cash flow is on track to rise year over year. All things considered, Dell appears to be in decent shape.
Sentiment among analysts tends toward bullish, with 12 of 19 brokerages having a Buy or Strong Buy rating and the rest rating the stock at Hold. At a share price of around $47.00, the upside potential based on a median price target of $59.00 is 25.5%. At the high price target of $72.00, the upside potential is about 53.2%.
The consensus revenue estimate for Dell’s second quarter of fiscal 2023 is $26.47 billion, up 1.3% sequentially and by 1.3% year over year. Adjusted EPS are forecast at $1.64, down 11% sequentially and 26.8% lower year over year. For the full fiscal year ending in January, analysts expect EPS of $7.02, up 12.9%, on sales of $106.15 billion, up 4.9%.
The stock trades at 6.7 times expected 2023 EPS, 6.3 times estimated 2024 earnings of $7.48 and 5.9 times estimated 2025 earnings of $7.94 per share. The stock’s 52-week range is $38.33 to $115.00. Dell pays an annual dividend of $1.32 (yield of 2.77%), and the total shareholder return for the past year was negative 6%.
Marvell
Chipmaker Marvell Technology Inc. (NASDAQ: MRVL) has seen its shares drop by about 13.5% over the past 12 months. Shares peaked in early December and have sunk by about 43% since then. Since posting a 52-week low in early July, shares have risen by more than 20%. If the company beats earnings and revenue expectations, it could see a nice share price bump. The company’s performance will be compared to Nvidia’s (reporting Wednesday afternoon). Nvidia already has warned that demand for the quarter was weak. Marvell has a chance to put up a nice surprise.
Analysts remain solidly bullish on Marvell stock. Of 32 brokerages covering the shares, 27 have a Buy or Strong Buy rating, and the rest rate the stock at Hold. At a share price of around $51.60, the upside potential to a median price target of $75.00 is 45.3%. At the high price target of $125.00, the upside potential is nearly 120%.
For its second quarter of fiscal 2023, Marvell’s revenue is forecast to come in at $1.52 billion, up 4.8% sequentially and by 40.7% year over year. Adjusted EPS are forecast at $0.56, up 8.6% sequentially and 64.7% higher year over year. For the full fiscal year ending in January, EPS is forecast at $2.33, up 48.6%, on sales of $6.18 billion, up 38.5%.
Marvell stock trades at 22.1 times expected 2023 EPS, 17.7 times estimated 2024 earnings of $2.92 and 14.3 times estimated 2025 earnings of $3.61 per share. The stock’s 52-week range is $41.07 to $93.85, and Marvell pays an annual dividend of $0.24 (yield of 0.47%). Total shareholder return for the past year was negative 16.5%.
Originally posted at 24/7 Wall St.
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