Last week Dell’s shares surged nearly 14% higher as the company reported very strong demand for business PCs and networking services. Sales climbed 16% to $26.1 billion in Q1 vs an expectation of $25 billion. The strong earning was mainly reported as being part of a ‘return’ to the office upgrade as companies make sure that they are keeping their computers up to date.
However, although these gains have passed sometimes Seasonax can help identify these strong tendencies for strength ahead of time. Although the data set is limited in this instance over the last 4 years Dell has gained an average of 9.77% each year and has not lost value once! Is this picking up on Dell’s earnings? Do Dell’s earnings tend to underpromise and overdeliver? The Co-Chief Operating Officer Jeff Clarke said that Dell is ‘built to outperform, in a balanced and consistent way across the company’. Are dip buyers ahead?
Major Trade Risks: Any signs that US inflation is picking up should weigh on stocks as the Fed will be perceived as being needed tone more aggressive over hiking rates.
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