Dell Technologies Stock Drop Looks Sharp, But How Deep Can It Go?
Dell Technologies (DELL) stock is down 19.3% in 21 trading days. The recent slide reflects renewed concerns around rising component costs and weak PC demand, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Dell Technologies stands today.
- Size: Dell Technologies is a $90 Bil company with $101 Bil in revenue currently trading at $132.09.
- Fundamentals: Last 12 month revenue growth of 10.5% and operating margin of 6.8%.
- Liquidity: Has Debt to Equity ratio of 0.35 and Cash to Assets ratio of 0.09
- Valuation: Dell Technologies stock is currently trading at P/E multiple of 16.9 and P/EBIT multiple of 11.1
- Has returned (median) 89.2% within a year following sharp dips since 2010. See DELL Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell DELL Stock
That brings us to the key consideration for investors worried about this fall: how resilient is DELL stock if markets turn south? This is where our downturn resilience framework comes in. Suppose DELL stock falls another 20-30% to $92 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
- Why Did Dell Stock Drop 22%?
- Buy or Sell Dell Technologies Stock?
- Hewlett Packard Enterprise or Dell Technologies: Which Stock Has More Upside?
- Dell Technologies Stock Slides 5.2% In A Single Day, Should You Buy The Stock?
- Dell Technologies Stock Down 5.2% In A Day. How Confident Are You In The Stock?
- S&P 500 Movers | Winners: ALB, KVUE, DAL | Losers: DELL, PHM, DHI
2022 Inflation Shock
- DELL stock fell 44.4% from a high of $60.77 on 9 February 2022 to $33.77 on 12 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 September 2023
- Since then, the stock increased to a high of $179.21 on 29 May 2024 , and currently trades at $132.09
| DELL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -44.4% | -25.4% |
| Time to Full Recovery | 324 days | 464 days |
2020 Covid Pandemic
- DELL stock fell 45.9% from a high of $26.87 on 19 February 2020 to $14.54 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 29 June 2020
| DELL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -45.9% | -33.9% |
| Time to Full Recovery | 103 days | 148 days |
2018 Correction
- DELL stock fell 35.1% from a high of $35.16 on 16 May 2019 to $22.82 on 28 August 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 13 October 2020
| DELL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -35.1% | -19.8% |
| Time to Full Recovery | 412 days | 120 days |
Feeling jittery about DELL stock? Consider portfolio approach.
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