Dell
Over the past 12 months, shares of Dell Technologies Inc. (NYSE: DELL) have shed 4.5% of their price. The company posted a new 52-week low in mid-October, and shares have bounced up by about 43.8% since then. Dell announced a 5% reduction of its workforce in February (about 6,650 jobs) in an effort to cut costs in the face of a sharp downturn in PC sales. The recent spike in AI-related stocks does not, alas, trickle down to desktops and laptops.
Sentiment among analysts remains bullish, with 12 of 19 brokerages having a Buy or Strong Buy rating and the rest rating it at Hold. At a share price of around $47.32, the upside potential based on a median price target of $47.55 is negligible. At the high price target of $55.00, the upside potential is about 16.2%.
The consensus revenue estimate for Dell’s first quarter of fiscal 2024 is $20.27 billion, down 19.0% sequentially and by 22.4% year over year. Adjusted EPS are forecast at $0.85, down 52.6% sequentially and 53.8% lower year over year. For the full fiscal year ending in January, analysts expect EPS of $5.30, down 30.4%, on sales of $87 billion, down 15%.
Dell stock trades at 8.9 times expected 2024 EPS, 7.5 times estimated 2025 earnings of $6.32 and 6.9 times estimated 2026 earnings of $6.85 per share. Its 52-week range is $32.90 to $51.75. Dell pays an annual dividend of $1.48 (yield of 3.08%), and the total shareholder return for the past year was negative 1.25%.
SentinelOne
Shares of cybersecurity software provider SentinelOne Inc. (NYSE: S) have declined by more than 21% over the past 12 months, including an increase of nearly 45% so far in 2023. More than 31% of that share price increase has come in the past month, riding the wave of investor interest in all things AI.
SentinelOne’s generative AI threat-hunting tool, Purple AI, integrated with the company’s Singularity platform, is better than either Microsoft’s or Google’s offerings, according to CEO Tomer Weingarten, but then, he would say that wouldn’t he? All these products are so new that it will take a while to sort them out. But SentinelOne is in the pack, now it has to prove that it can rise above it.
Of 30 brokerages covering the company, 18 have a Buy or Strong Buy, and the other 12 have Hold ratings. At a price of around $21.00, the shares already trade above their median price target of $20.50. At the high price target of $49.00, the upside potential is 133%.
First-quarter revenue is forecast at $136.61 million, up 8.3% sequentially and by 74.6% year over year. The company’s adjusted loss per share is forecast at $0.17, compared to a loss of $0.14 sequentially, and better than the $0.21 per share loss in the year-ago quarter. For the full 2024 fiscal year ending in January, the company is expected to post a loss per share of $0.49, compared to a loss of $0.70 per share last fiscal year, on sales of $637.63 million, up 51%.
SentinelOne is not expected to post a profit in 2024 or 2025. Shares trade at 74.3 times estimated 2026 earnings of $0.43 per share. The stock’s 52-week range is $12.69 to $30.00. The company does not pay a dividend, and the total return for the past year was negative 21.65%.
Originally published at 24/7 Wall St.
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