Dell Technologies (NYSE:DELL) stock has dropped 11% over the past three months as of close on September 5. The stock has increased 4.7% in 2019 so far. Dell released its second quarter fiscal 2020 results on August 28.
Revenue rose 2% year-over-year to $23.4 billion and operating income climbed to $519 million compared to a $13-million loss in Q2 fiscal 2019. Non-GAAP net income increased 39% from the prior year to $1.75 billion and adjusted EBITDA rose 28% to $3.15 billion. Dell’s PC business contributed a great deal to its strong quarter.
Dell’s Client Solutions Group segment saw its revenue rise 6% year-over-year to $11.7 billion. It reported double-digit revenue growth in commercial notebooks, desktops, and workstations. So, is Dell a smart addition to your portfolio in early September?
The stock spent much of August fighting turbulence due to negative sentiment in tech hardware in the wake of heightened U.S.-China trade tensions. There is promise on that front as trade talks are set to re-start in October. Going forward, Dell is aiming to leverage its diverse portfolio and benefit from tech growth drivers like 5G.
Shares of Dell have climbed out of technically oversold levels after its post-earnings bump. The stock boasts a favourable price-to-earnings ratio of 13.1 and a forward P/E in the single-digits, but its price-to-book sits at a pricey 5.2. There are encouraging signs in Dell’s second quarter, and the stock is still trading at the low end of its 52-week range.
