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Yahoo
2 days ago
- Business
- Yahoo
Is Dell Technologies Stock Underperforming the S&P 500?
Valued at $81.9 billion by market cap, Dell Technologies Inc. (DELL) operates as one of the largest laptop and PC companies in the world. The Round Rock, Texas-based PC designer operates through Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) segments. Its operations span numerous countries across the Americas, Indo-Pacific, and EMEA. Companies worth $10 billion or more are generally described as "large-cap stocks." Dell fits right into that category, reflecting its significant presence and influence in the computer hardware industry. Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? Dear Micron Stock Fans, Mark Your Calendars for June 25 Is United Health Stock a Buy, Hold or Sell for July 2025? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Dell touched its all-time high of $150.23 on Jul. 9, 2024, and is currently trading 19.8% below its peak. Meanwhile, Dell stock has soared 21.9% over the past three months, significantly outperforming the S&P 500 Index's ($SPX) 5.5% gains during the same time frame. Over the longer term, Dell stock has gained 4.5% on a YTD basis and plunged 14.2% over the past 52 weeks, outpacing SPX's 3.6% gains in 2025, but significantly underperforming SPX's 11.4% surge over the past year. To confirm the recent upturn, Dell stock has traded consistently above its 50-day moving average since the start of May and mostly above its 200-day moving average since mid-May, with some fluctuations. Dell Technologies' stock prices dropped 2.1% in the trading session after the release of its mixed Q1 results on May 29. The company's net revenues for the quarter increased 5.1% year-over-year to $23.4 billion, surpassing the consensus estimates by 1%. Meanwhile, the company's adjusted EPS for the quarter grew by 17.4% year-over-year to $1.55, but missed the consensus estimates by a notable margin. However, Dell registered a significant growth in cash flows; its adjusted free cash flows for the quarter grew from $623 million in the year-ago quarter to $2.2 billion. On a more positive note, the stock has notably outperformed its peer HP Inc.'s (HPQ) 24.8% drop on a YTD basis and 32.4% decline over the past 52 weeks. Among the 19 analysts covering the Dell stock, the consensus rating is a 'Strong Buy.' Its mean price target of $137.05 suggests a 13.8% upside potential from current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
New York Post
2 days ago
- Business
- New York Post
S&P 500, Nasdaq hit record highs on renewed AI enthusiasm, rate-cut hope
The S&P 500 and Nasdaq Composite hit all-time highs on Friday as megacap stocks surged on renewed AI enthusiasm and the prospect of a looser monetary policy, powering a recovery in U.S. stocks from months-long rout. The benchmark index .SPX rose 0.2% to 6,154.81 points, surpassing the previous peak of 6,147.43 on February 19, while the tech-heavy Nasdaq gained 0.3% to 20,229.31 points, exceeding its record high of 20,204.58 on December 16. Markets rallied this week as an upbeat forecast from chipmaker Micron MU.O brought back investor confidence around artificial intelligence, while AI bellwether Nvidia NVDA.O hit a record high to reclaim its position as the world's most valuable company. Advertisement 5 Traders work on the floor at the New York Stock Exchange on June 26, 2025. REUTERS 5 Federal Reserve Chairman Jerome Powell speaking on June 25, 2025. AP Risk appetite also benefited from a U.S.-brokered ceasefire to a 12-day air battle between Israel and Iran that sparked a jump in crude prices and raised worries of higher inflation. Dovish remarks from Federal Reserve policymakers have also aided sentiment. Advertisement 5 S&P 500 index graph showing a rise to 6,169.36. Trump's April 2 'reciprocal tariffs' on major trading partners and their chaotic rollout had put the S&P 500 within a striking distance of confirming a bear market when it ended down 19% from its February 19 record closing high. The Nasdaq had tumbled 26.7% from its previous peak, marking a bear market days after Trump's 'Liberation Day' on April 2. 5 Nasdaq has hit a record high. Advertisement Since then, U.S. trade deals with the UK and China have firmed up market expectations for more such agreements on the hopes that a global recession could be avoided. The S&P 500 has surged more than 23.5% and the Nasdaq about 32% since their recent lowest close on April 8, largely powered by a handful of megacap stocks such as Microsoft MSFT.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon AMZN.O. 5 Trump announced a cease-fire between Iran and Israel earlier this week. AP Advertisement If the Nasdaq closes above the December 16 record close at 20,173.89, it would be the end of the bear market and start of a new bull market, according to common definitions. A bear market is defined as a 20% decline from a record high close, on a closing basis. Both the Nasdaq and S&P 500 have gained 4.4% this year as of Thursday's close. The blue-chip Dow .DJI has risen about 2% this year and remains about 3.7% below its all-time peak.
CNBC
2 days ago
- Business
- CNBC
Look for S&P 500 rally to continue into mid-July, says chart analyst
The S & P 500 could continue to rally for the next few weeks, according to Wolfe Research. "We continue to get asked how much further this rally might run before consolidating. Our thinking has been mid to late July — right in time for the start of second-quarter earnings season and the typical seasonal peak," technical analyst Rob Ginsberg wrote Thursday. Stocks have been on a tear in recent weeks, with the S & P 500 surging more than 20% since reaching a low in April. Equities took a hit on fears that President Donald Trump's tariff policies would hurt corporate profits, slow the economy and maybe lift inflation. .SPX YTD bar SPX year to date Trade pressures have since eased, sending stocks to within a whisker of record levels. The S & P 500 entered Friday's session just 0.1% below its all-time intraday high set in February. S & P 500 futures were up around 0.2%, signaling a new record will be set at the open. Ginsberg also noted that the grind back to record highs comes as large speculators take out larger short positions, betting that prices will fall. The analyst said short positions on S & P 500 futures are at their highest levels since the first quarter of 2024. "If the VIX breaks support and large specs start covering, that could be the fuel for some near-term capitulation in the weeks ahead" and fuel more market gains, Ginsberg said, referring to the Volatility Index that's traded on the Chicago Board Options Exchange. The VIX, which briefly touched 60 in early April, has tumbled all the way back to 16.23 at Thursday's close. Elsewhere Friday morning on Wall Street, Citizens JMP Securities upgraded Google-parent Alphabet , calling for more than 20% upside on the stock citing benefits from artificial intelligence. "We believe AI is a net tailwind, with ChatGPT's impact too small today to move enough queries away from Google to materially impact results, while AI is expanding the search opportunity by answering a broader array of queries and extending monetization as AI better infers user intent," analyst Andrew Boone wrote in a note published Thursday.
Business Insider
2 days ago
- Business
- Business Insider
Stock Market News Review: SPY, QQQ Near Record-Highs on Flexible Tariff Deadlines, EU Trade Concessions
Thursday was another green day for the stock market, as both the S&P 500 (SPX) and the Nasdaq 100 (NDX) closed near their respective all-time highs, shrugging off a lower revision to U.S. GDP. Confident Investing Starts Here: GDP is now projected to fall by 0.5% during the first quarter, down from the prior estimate for a 0.2% decline. While it was known that a surge in imports would lead to lower GDP, consumer spending growth was revised lower to 0.5% from 1.2% amid rising economic uncertainty driven by tariffs. On the trade front, White House economic advisor Stephen Miran expects the U.S. to push back the July 9 trade deal deadline for countries ' negotiating in good faith.' Miran also said that President Trump's baseline 10% tariff will either remain in place or be slightly lower for countries that ink a deal. What's more, the European Union is close to finalizing its plan to combat U.S. tariffs ahead of its July 9 deadline. While earlier reports said that the bloc was preparing retaliatory tariffs, the Wall Street Journal said today that it may consider lowering tariffs on certain imported U.S. goods and reduce non-tariff countermeasures while increasing imports of items like liquefied gas. Trump had previously said that the EU was formed to 'screw' the U.S. on trade. Following the Israel-Iran truce, the extent of the damage to Iran's nuclear program was widely disagreed upon. Some news publications published leaked data from U.S. intelligence documents that showed Iran's nuclear progress was only pushed back by a few months. President Trump once again reiterated that the damage resulted in the complete destruction of the program while sending shots at the reporters responsible for publishing the leaked data. 'FAKE NEWS REPORTERS FROM CNN & THE NEW YORK TIMES SHOULD BE FIRED, IMMEDIATELY!!! BAD PEOPLE WITH EVIL INTENTIONS!!!' said Trump on Truth Social this morning. Finally, housing data showed an encouraging signal for the market. May's pending home sales increased by 1.8% month-over-month, above the expectation for a 0.1% jump and staging a recovery from April's 6.3% drop. 'Consistent job gains and rising wages are modestly helping the housing market,' said NAR Chief Economist Lawrence Yun. 'Hourly wages are increasing faster than home prices.' That's a good sign for the stock market, as consumers wouldn't purchase homes if they weren't financially stable with a positive outlook on the economy. The S&P 500 closed with a 0.80% gain while the Nasdaq 100 returned 0.94%.
Yahoo
2 days ago
- Business
- Yahoo
The vanishing ‘Buffett premium': Has Berkshire Hathaway lost the Oracle of Omaha's aura?
For decades, investors around the world have paid extra for Warren Buffett's capital-allocation genius when buying Berkshire Hathaway's stock. They have routinely paid up just to ride alongside the Oracle of Omaha — a phenomenon known as the 'Buffett premium.' But that premium, a piece of Wall Street lore that is hard to accurately quantify, is looking fragile. JPMorgan has a new way of forecasting the stock market — and there's a surprising finding 'He doesn't seem to care': My secretive father, 81, added my name to a bank account. What about my mom? My job is offering me a payout. Should I take a $61,000 lump sum or $355 a month for life? Sorry, but most American weddings are a lot more extravagant than the nuptials of Amazon's Jeff Bezos Israel-Iran clash delivers a fresh shock to investors. History suggests this is the move to make. Ever since the legendary investor announced in May that he plans to retire as CEO at the end of this year, Berkshire's Class A BRK.A and Class B shares BRK.B have both fallen over 10% to trade in correction territory as of Monday afternoon, while the large-cap S&P 500 index SPX has advanced over 6% in the same period, according to Dow Jones Market Data. Investors were no longer willing to pay a steep premium for Berkshire's stock, with Class B shares trading at 1.5 times book value as of Monday, down from a recent peak of around 1.7 times on May 2 — the last trading day before the company's annual shareholder meeting. It was at that meeting that Buffett told shareholders he planned to hand over the company's reins to longtime designated successor Greg Abel. 'It's completely natural that the premium would be reduced until the market really gets a full handle on what Berkshire Hathaway looks like in this new environment, with Greg Abel solely at the helm,' said Jim Thorne, chief market strategist at Wellington-Altus Private Wealth. The 'Buffett premium' refers to the additional amount investors are willing to pay for Berkshire's stock because of Buffett's reputation and investing track record. There's no exact formula to calculate the premium, but investors usually compare Berkshire's market value to its intrinsic value, or look at its price-to-book ratio to determine whether the stock is trading at an excess valuation that could partly be attributed to Buffett's presence. But many still question whether the 'Buffett premium' has ever been more than a psychological buffer granted to one of the most trusted figures in the investment world. 'Buffett has had the luxury of most shareholders turning a blind eye to the numbers and not focusing on how well [Berkshire's financial] returns have been over the past 10 to 15 years,' Greggory Warren, senior stock analyst at Morningstar, told MarketWatch in a phone interview. 'I'm not sure if there's a premium, but investors have been willing to give Buffett a lot of leeway to put up bad financial results.' Buffett has had a long and extraordinary track record of investing success, especially in times of extreme market uncertainty. His more conservative and value-based approach has helped Berkshire's Class B shares to deliver double-digit annual gains in six of the past 10 years and to outperform the S&P 500 in the same period, according to FactSet data. Berkshire's solid balance sheet and diversified portfolio holdings in insurance, utilities and consumer staples also make it less sensitive to economic cycles and higher interest rates. And then there's Berkshire's incomparable long-term record. The stock traded at around $20 per share in 1965, the year Buffett took control of the company. Since then, Berkshire's Class A shares have soared more than 40,000-fold. That means an investor who put $100 into Berkshire stock back then would be sitting on $4 million today. Against that backdrop, shares of Berkshire stood out as a defensive and resilient option in the stock market in the opening months of 2025 as investors grew increasingly concerned that President Donald Trump's aggressive and ever-changing trade policies could reignite inflation and plunge the U.S. economy into recession. Berkshire's Class B shares outpaced the S&P 500 in the first four months of 2025, rising 17.6% before tumbling in May and surrendering most of those gains after Buffett's announcement that Abel would take over as Berkshire CEO at the start of 2026, according to FactSet data. But Buffett's resignation isn't the only factor behind the shrinking premium for Berkshire's stock, as 'the market psychology has also started to pivot from a very defensive posture to a more balanced and almost offensive posture' over the past month, Thorne told MarketWatch via phone on Monday. 'The market is starting to become more resilient and more comfortable with Trump's economic policies, realizing that maybe they aren't as inflationary as expected, maybe Trump's 'big, beautiful bill' is attacking the deficit and maybe DOGE is slowly getting more efficient,' he said. 'In that type of environment, you wouldn't want to own Berkshire Hathaway because it's a 'Steady Eddie.'' See: How Trump's big bill will directly impact your wallet — from paying your taxes and healthcare to raising a child and owning a home Berkshire's recent underperformance has also reignited questions about whether Buffett's value-investing approach — focusing on corporate fundamentals, cash flow and the intrinsic value of a company — is losing its edge in today's market, which favors growth stocks and the rewards they have brought since the financial crisis of 2008-09. 'Berkshire's stock has had periods when it has underperformed the S&P 500, despite its stunning long-term returns. It will doubtless have them again,' said Russ Mould, investment director at AJ Bell, referring to the decades the company was run by Buffett and Charlie Munger, Berkshire's longtime vice chair, who died in 2023. 'No investment style can work each and every year, given the vagaries of economic and stock markets. … But Buffett and Munger still made it work through their disciplines and patience all the same, even if some will argue they were more buyers of franchises and quality than deep value in the end,' Mould told MarketWatch. Also see: How investors should think about Berkshire's stock price without Buffett Then there's the question of what Berkshire's future will look like under Abel, the current head of noninsurance operations. Abel has publicly stated that the company's investment philosophy will not change, and that he will continue to buy well-run, cash-generating companies with long-term prospects at fair prices when he takes over as CEO. Still, some market watchers and Berkshire shareholders do expect — and hope — that Abel will eventually tackle key issues that Buffett has yet to address, such as a balance sheet with excessive cash holdings, as well as the company's resistance to paying dividends to its investors. It remains unclear whether investors will extend the same level of patience to Abel as they did to Buffett. Berkshire has more than doubled its cash pile over the past two years. The company held roughly $350 billion in cash, cash equivalents and short-term Treasury bonds as of March 31, 2025, compared with around $160 billion at the end of 2023, according to data compiled by MarketWatch. At the same time, Berkshire has been a net seller of stocks in its equity portfolio for at least 10 straight quarters. In his annual letter to shareholders in May, Buffett addressed his company's massive and growing cash pile, reassuring investors that 'the great majority of your money remains in equities.' He also added that Berkshire would always prefer ownership of 'good companies, whether controlled or partially owned,' over cash-equivalent assets. 'Any sort of advantage that's been there when Buffett and Charlie Munger were running the show was that investors were willing to let them sit on tons of cash, even all that cash was dragging down returns,' Warren said. 'But Abel's going to be held to a completely different standard and be treated more like a normal CEO.' In Warren's view, Abel needs to come out strong with a clear game plan once he takes over. 'The first sentence out of his mouth should be, this company has too much capital and it's time to return more to its shareholders, but it was difficult to do so while he was still serving second in charge,' he said. Buffett will continue in his role as chair of Berkshire's board of directors, and said he will still 'hang around and conceivably be useful' in some cases after stepping aside as CEO. Buffett also assured shareholders he had no intention of selling any of his Berkshire shares. Also at issue is whether Berkshire will begin returning capital to investors through dividends under Abel. For decades, Buffett has said Berkshire's portfolio can generate higher returns for shareholders by reinvesting profits than by paying investors directly. Instead of dividends, Buffett favors share buybacks when he thinks the stock is trading at a meaningful discount to its intrinsic value. Warren thinks the new CEO could open the door to 'institute a small or special dividend payout,' as it is 'in Greg Abel's best interest over the long run to reduce the size of Berkshire's balance sheet,' he said. 'Buffett had avoided paying dividends and reinvested capital at high returns — which worked well early in his career, but it's been much harder to reinvest that capital over the past 10 years,' Warren said. 'So I think the dividends are coming. That may help shore up the shareholder base and keep it going.' 'He's so manipulative': My brother stole $100K from my mom to buy bitcoin. Do I convince her to sue him? 20 banks expected to increase their dividends the most following the Fed's stress tests Israel-Iran conflict poses three challenges for stocks that could slam market by up to 20%, warns RBC We're living in 'end times' when you can't retire on $1 million I'm 75 and have a reverse mortgage. Should I pay it off with my $200K savings — and live off Social Security instead? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
