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.
Dellfacts
Headquarters (founded) | Round Rock, Texas (1984) |
Market Cap | $18.4 billion |
Industry | Computer hardware |
Trailing-12-Month Revenue | $60.3 billion |
Management | Founder/Chairman/CEO Michael Dell |
Return on Equity (average, past 3 years) | 37.2% |
Cash/Debt | $11.9 billion / $8.5 billion |
Competitors | Hewlett-Packard |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 29% of the 5,770 members who have rated Dell believe the stock will underperform the S&P 500 going forward.
Just last month, one of those Fools, NHWeston102, succinctly summed up the bear case for our community:
Dell's not well. The classical "box" is not going to vanish entirely but, barring some serious retooling, it won't be Dell making them. Like the leaves of autumn, Dell's drifting into a downward spiral. Not buyout bait, either.
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The article 2-Star Stocks Poised to Plunge: Dell? originally appeared on Fool.com.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of IBM. Motley Fool newsletter services have recommended creating a synthetic long position in IBM. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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