The tech sector has been hit hardest in 2022 amid aggressive Fed rate hikes and fears of a possible recession. The tech-heavy Nasdaq Composite is down 18.7% over the past year. moreover, Staff reduction In the face of uncertain economic conditions, the technology sector is on the rise.
However, experts predict that rapid digitization and increased investment in various industries will increase the demand for advanced technological solutions. Significant growth in the technology industry Despite lingering macroeconomic headwinds this year.
According to a recent forecast by Gartner, Inc. (that), and global IT spending is $4.50 trillion by 2023, an increase of 2.4% from last year. The global information technology market is Growing at 4.5% CAGR It is expected to reach $6.2 trillion by 2028.
Against this backdrop, buying and holding Dell Technologies Inc., a technology stock with strong fundamentals, may be wise.Dell) this year. However, WiSA Technologies, Inc. (WISA) is best avoided due to weak financials and bleak growth prospects.
Stock to buy:
Dell Technologies, Inc. (Dell)
DELL designs, manufactures, markets and supports a wide range of comprehensive and integrated solutions, products and services worldwide. Its segments include Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The company also provides information security solutions to protect clients from online threats.
On January 17, 2023, DELL announced 13 next-generation Dell PowerEdge servers designed to accelerate powerful computing performance and reliability across core data centers, massive public clouds, and edge locations. expanded the industry’s best-selling server portfolio1 by adding
With this launch, Dell will be able to accelerate scientific progress, deliver performance that spreads innovation around the world, and help grow your business.
Additionally, on November 17, 2022, DELL strengthened its industry leadership in data protection appliances and software, helping clients protect data on-premises, in the public cloud, and at the edge. The Dell PowerProtect Data Manager Appliance is at the forefront of a series of innovations in multi-cloud data protection that are easy to use and consume.
DELL innovations in AI-powered resilience and operational security accelerate the adoption of Zero Trust architectures and protect enterprises from the growing threat of cyberattacks. This should prove to be strategically beneficial for DELL.
For the third quarter ended October 28, 2022, Dell’s services revenue was $5.78 billion, up 6.2% year-over-year. Non-GAAP operating income increased 21.7% year over year to $2.38 billion. Additionally, the company’s non-GAAP net income of $1.71 billion increased 29.9% from the prior-year period, and non-GAAP EPS of $2.30, an increase of 38.6% year-over-year.
DELL pays an annual dividend of $1.32 per share. This equates to a yield of 3.30% at the current price level. The four-year average dividend yield is 0.33%.
The consensus EPS estimate for the fiscal year ending January 2023 was $7.46, representing an improvement of 19.9% year over year. Additionally, the company outperformed consensus EPS in three of his four quarters. This is impressive. DELL’s stock rose 1.5% during the day to close the last trading session at $40.62.
Dell’s POWR rating It reflects its promising prospects. The stock has an overall rating of B, which is equivalent to a buy in our proprietary rating system. The POWR Rating is calculated taking into account 118 different factors, each weighted to an optimal degree.
This stock has a B grade for Growth, Value and Sentiment. in 44 shares Technology – Hardware It ranks 11th in the industry.
In addition to the above, there’s also DELL’s rating for stability, quality, and momentum.GET ALL DELL RATINGS here.
Inventory to avoid:
WiSA Technologies Inc. (WISA)
WISA develops and markets wireless audio technology for smart devices and next generation home entertainment systems in the United States, Taiwan, China, Japan and South Korea. It provides an immersive audio experience for high-definition material such as movies, videos, music, sports, games/esports, and other media.
On January 26, 2023, the company authorized a 1/100 reverse split of its common stock. In general, market participants reverse stock split Favorably. This suggests that the stock price has reached a low point and that the company’s management is trying to artificially raise the price without presenting a viable business proposition.
Also, on December 27, 2022, WISA was granted an additional 180 days by the Nasdaq Stock Market LLC to comply with Nasdaq’s rules governing minimum bids or until June 20, 2023. reported that it had received a letter notifying
Nasdaq has informed the company that its common stock no longer meets the minimum bid price of $1 per share based on the past 30 consecutive business days. This prompted WISA to execute a reverse stock split during his second compliance period.
In the third quarter ended September 30, 2022, WISA revenue decreased 48.1% year-on-year to $937,000 and gross profit decreased 74.3% year-on-year to $130,000. rice field.
Operating loss worsened 62.7% year-on-year to $4.75 million. Also, the company’s net loss and his net loss per share widened 125.6% and 106.7% year-over-year to $4.65 million and $0.31, respectively.
Analysts expect WISA to report a loss of $84 per share for the fiscal year ending December 2022. WISA also said he underperformed consensus EPS forecasts three out of four quarters, which is disappointing.
The stock has plummeted 30.1% over the past five days and 91.1% over the past year, closing the last trading session at $10.49.
WISA’s poor fundamentals are evident in its POWR rating. The stock has an overall rating of F, which equates to a strong sell in our proprietary rating system.
WISA has an F grade for quality and stability and a D grade for emotion and growth. It ranks 41st out of 44 stocks in the same industry.
In addition to the POWR rating I just highlighted, you can see WISA’s rating for Value and Momentum. here.
Consider this before making your next trade…
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DELL shares traded at $40.74 a share Wednesday afternoon, up $0.12 (+0.30%). Year-to-date, DELL is up his 2.11%, while the benchmark S&P 500 index is up his 5.70% over the same period.
About the Author: Aanchal Sugandh
Aanchal’s passion for the financial markets drives her work as an investment analyst and journalist. She has a bachelor’s degree in finance and is working on the CFA program. Her fundamental analysis skills make her adept at assessing the long-term outlook of stocks. Her goal is to help investors build portfolios that deliver sustainable returns. more…
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