Dell Technologies Inc. (DELL) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Dell Technologies (DELL)? Shares have been on the move with the stock up 51.7% over the past month. The stock hit a new 52-week high of $327.73 in the previous session. Dell Technologies has gained 151.9% since the start of the year compared to the 20.5% gain for the Zacks Computer and Technology sector and the 17.9% return for the Zacks Computer - Micro Computers industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 28, 2026, Dell Technologies reported EPS of $4.86 versus consensus estimate of $3.04 while it beat the consensus revenue estimate by 23.62%.

For the current fiscal year, Dell Technologies is expected to post earnings of $13.14 per share on $143.93 in revenues. This represents a 27.57% change in EPS on a 26.77% change in revenues. For the next fiscal year, the company is expected to earn $14.85 per share on $154.04 in revenues. This represents a year-over-year change of 13.04% and 7.03%, respectively.

Valuation Metrics

While Dell Technologies has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Dell Technologies has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 24.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24.1X. On a trailing cash flow basis, the stock currently trades at 22.1X versus its peer group's average of 16.6X. Additionally, the stock has a PEG ratio of 1.08. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Dell Technologies currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Dell Technologies passes the test. Thus, it seems as though Dell Technologies shares could still be poised for more gains ahead.

How Does DELL Stack Up to the Competition?

Shares of DELL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Lenovo Group Ltd. (LNVGY). LNVGY has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. Lenovo Group Ltd. beat our consensus estimate by 105.00%, and for the current fiscal year, LNVGY is expected to post earnings of $2.75 per share on revenue of $93.88 billion.

Shares of Lenovo Group Ltd. have gained 68% over the past month, and currently trade at a forward P/E of 18.48X and a P/CF of 11X.

The Computer - Micro Computers industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DELL and LNVGY, even beyond their own solid fundamental situation.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research