In a welcome move, Dell Technologies saw its Relative Strength Rating rise from 68 to 73 on Tuesday. The computer giant has put up strong numbers recently and big money investors have taken notice. They're heavy buyers of its stock and pushed Dell stock up 3.5% Tuesday.
Dell Stock Eyes Top 25% Group
The 73 RS Rating shows that Dell stock tops 73% of all stocks for price appreciation over the past year. Stocks that go on to make the biggest gains typically have an RS Rating over 80 as they begin their largest runs. See if Dell Technologies can continue to show renewed price strength and hit that benchmark.
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In addition, Round Rock, Texas-based Dell has an 81 Composite Rating, putting it in the top 19% of stocks on a group of fundamental and technical metrics. It could use improvement there too. The best growth stocks have a 90 or higher Composite.
However, it also sports a B Accumulation/Distribution Rating, showing that institutional investors are buying more shares than selling. And Dell stock's relative strength line, which compares a stock's movement vs. the S&P 500 is near a fresh high and has been trending higher the last month. It's the blue line on IBD stock charts.
Like other tech stocks, Dell stock took a hit early this year. However, its rebounded nicely, partly on a strong earnings report at the end of May. Dell's EPS jumped 36% to $1.84. Sales climbed 16% to $26.1 billion.
Huge Jump In Stock Price On Earnings
On May 27 Dell stock shot up nearly 13% in heavy volume to close at 49.58 and it's held onto the lion's share of that gain. On Tuesday it popped 3.5% to 49.23. While Dell Technologies is not near a proper buy point right now, see if it manages to form and break out from a proper consolidation.
Dell stock earns the No. 2 rank among its peers in the Computer-Hardware/Peripherals industry group. Super Micro Computer is No. 1 and HP Inc. is No. 3 in the group.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength.
This unique Relative Strength Rating tracks technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the trailing 52 weeks matched up against all other stocks.
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