2-Star Stocks Poised to Plunge: Dell?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, computer giant Dell (NAS: DELL) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Dell's business and see what CAPS investors are saying about the stock right now.
Dell facts
Headquarters (Founded) | Round Rock, Texas (1984) |
Market Cap | $21.9 billion |
Industry | Computer hardware |
Trailing-12-Month Revenue | $61.5 billion |
Management | Founder/Chairman/CEO Michael Dell |
Return on Equity (Average, Past 3 Years) | 36.9% |
Cash/Debt | $13.7 billion / $9.0 billion |
Competitors | Hewlett-Packard |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 29% of the 5,734 members who have rated Dell believe the stock will underperform the S&P 500 going forward.
Just last month, one of those bears, plxtal, listed several of the factors working against Dell:
- mobile revolution
- highest share of exposure to PC market ...
- Still playing [catch-up] in services, server and corporate market to [Hewlett-Packard] and IBM
- Retail & peripherals products are getting irrelevant
Dell should stabilize at some point if they continue to focus on the cloud and corporate market. For now they don't look too good.
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At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Fool owns shares of IBM. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
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