$Dell Technologies Inc.(DELL)$ According to Birinyi Associates, DELL has a forward P/E of 12.95. The S&P 500 index has a forward P/E of 23.58 according to "The Wall Street Journal". So, if you can believe analysts' estimates, DELL stock is roughly half as expensive as the S&P 500 index on a forward P/E basis. I expect DELL's earnings per share to grow faster than the S&P 500 aggregate EPS, so that tells me that DELL stock is likely to outperform the S&P 500 index over the coming days, weeks and months. But, even if DELL's EPS only grow at the same rate as the S&P 500's aggregate EPS, DELL stock will probably still outperform the S&P 500 index, because of its much lower valuation. DELL still trades at a steep discount to the S&P 500, even though it's a tech stock exposed to the fast-growing AI segment.
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