This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

PCs Are Dead, Death Knell for Dell

Investor interest: Here is where I think Wall Street has it all wrong. The overly educated CFAs have made 11 strong buy, five buy, 15 hold, two underperform and no sell recommendations to their clients. I'm not sure I interpret their own revenue and earnings projections the same way they do.

I use Motley Fool readers' opinions to gauge the individual investors' sentiment and even its 5,775 readers have given a weak 71% vote of confidence that the stock will beat the market.

Competition: I always like to see how the market views a stock compared to its competition. Over the past year, while Apple (AAPL) was up 60% and IBM (IBM) was up 13%, Dell was down 41% and Hewlett-Packard (HPQ) was down by 45%.

Apple has an A++ financial strength rating and an A rating by TheStreet. Revenue is projected to increase by 23.90% next year and earnings are expected to compound annually at a 24.02% rate for the next five years.

IBM has an A++ financial strength rating and an A+ rating by TheStreet. Revenue is projected to increase by 2.70% next year and earnings are expected to compound annually at a rate of 9.97% over the next five years.

Hewlett-Packard has an A financial strength rating and only a D+ rating by TheStreet. Revenue is expected to decrease by 4.70% next year and earnings are estimated to compound by only 1.75% annually for the next five years.

Yahoo! Finance Profile: Dell provides integrated technology solutions in the information technology industry worldwide. It designs, develops, manufactures, markets, sells and supports mobility and desktop products, including notebooks, workstations, tablets, smart phones and desktop PCs, as well as servers and networking products.

The company sells its products and services directly through its sales representatives, telephone-based sales, and online sales; and through retailers, third-party solution providers, system integrators, and third-party resellers. It serves corporate businesses, law enforcement agencies, small and medium businesses, consumers, and public institutions that include government, education and health care organizations. Dell was founded in 1984 and is headquartered in Round Rock, Texas.

Conclusion: For my investment accounts I want projected steady increase of revenue and earnings and I do not see that from Dell. Only speculators and day traders need to follow this stock and they will be praying for a better P/E.

Your IRA deserves better and if you need to be in this sector, I think you'll agree that the market likes Apple and IBM better than Dell and Hewlett-Packard and so should you.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs