Dell Technologies (DELL) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Dell Technologies has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, driven by institutional investors who adjust their valuations based on these estimates [3][5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which subsequently affects stock prices [3]. Dell Technologies' Earnings Outlook - The recent upgrade for Dell Technologies reflects an improvement in its underlying business, with rising earnings estimates expected to drive the stock price higher [4][9]. - Analysts have raised their earnings estimates for Dell Technologies, with the Zacks Consensus Estimate for the fiscal year ending January 2026 projected at $9.47 per share, showing a 3.4% increase over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - The upgrade of Dell Technologies to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating its strong earnings estimate revision feature and potential for market-beating returns [8][9].