Dell is undervalued given its high growth and leadership status; target price of $600 contingent on stable market conditions.

the title of our stream today being uh Dell, where it's headed next. So I want to talk about Dell, where you see this name going after earnings, etc. So Dell uh reported after the close on Tuesday, a blowout report.

stock has been great since then. You and the inner circle were active in the name uh after hours like during the report response after hours on Tuesday. I know Kier was trading it.

Um yesterday the action a bit of a pullback yesterday.

just for clarity, we were active in the after hours buying it. We were active off of the opening pullback uh pretty aggressively buying it and uh then we were active yet again today on the pullback off the open. So three three different buys.

Um so the way I looked at Dell is pretty simple. Expectations were high. Stock had moved a great deal after the last quarter and had kind of plateaued at 500 and pulled back a few times.

And the question was, would it be good enough to continue the momentum?

Um, and people really wanted to see them raise guidance to a minimum of 20 $21 a share in 2027. Uh, and a lot of analysts were saying that can happen, maybe even 22. And then he comes out and gives a midpoint range of 25, which tells you this enormous company has earnings growth of near 150%.

And yet it's trading under 20 times with an S&P multiple uh 1920 20 times.

So you can get 150% growth from uh a bonafide rockstar who also is uh favored by our administration for good reasons because he's donated so much money to the Trump accounts. Uh who's a favorite of Jensen who is hitting on all cylinders who uh only sees momentum in his business.

And I said, I don't know why the market's not responding, but it was in the 440s. I said, maybe I'm getting something wrong here, but I don't know how you can't buy uh Dell when when you can buy 150% growth for the equivalent of 18 times Ford earnings.

And we're going in, we're almost in 27 as is, so it's not even far away. So that's what we did.

um trimmed a bit because it it went to like 473 in after hours. And then yesterday, uh first pullback we added and that was uh 5, excuse me, 450s and uh we trimmed a lot into 472.

Uh pulled back a bit, then went to 480. I sold most and got to a trailer because it was up a lot more than the expected move. It was then stopped out of my trailer. uh near lows of the day.

Um it it actually went beneath and back above, right? [laughter] Uh so it was a catalyst to go much higher and it just screamed throughout the day and most of the chat still had it um or had some.

And uh this morning I woke up, I said, "It's a new day. My story still stands. Uh I got to trade this a little less tight." And the first pullback I'm buying. So off the open when we pull back to 480, I said I'm a buyer.

Probably be 500 today. Um uh or if not tomorrow. And uh we bought pretty aggressively. 480. Uh still own some, but I'm down to a trailer and we're at 518 right now. Hit 530.

Broke out to new all-time highs. So you have a new sequence above 514. But I got to keep it real. The stock was 430 yesterday. It hit 530 today. I do think it'll be viable. I'll continue add back to the position, but closer to 500 or below.

And that is Dell. And that's how we've been trading this earning season.

Find two or three of our favorites. Try not to carry too many positions in a market that's done a lot of nothing and frankly done really well by not relying on the market and being more about individual equities and finding two or three of our favorites.

And then we did a bunch of calls on Dell. I think Rick had bought intraday calls on Dell that went up 500% today. not only was it buying Dell, but it was also, you know, tons of people if they managed smaller accounts were buying the calls and frankly making absurd percents.

Dell at 518. Um, the 52- week high is 53078. So like right under 531. Does Dell get to 600? Is it possible? Uh so the way I look at Dell is if the market holds, this has to be a leadership stock for a few reasons.

First, the multiple. Secondly, it's not this trillion or two trillion dollar company where it's hard to move the boat because it's so big. talking about a $300 billion company, which if you're old like me, it used to seem big.

In today's world, it's like that's small, right? [laughter] Trillion dollar companies left and right. My point is, it's not hard for a stock like this to go up 20%.

Um, and then perhaps more importantly, it led on the way down, meaning it showed relative strength when the market corrected and it was one of the first stocks to make a new high and go over 500.

So for all those reasons including fundamentals, earnings chart, relative strength, this is a stock that if the market holds right, if we figure out the war, if oil pulls back, if inflation's in check, if we don't get several rate hikes, this is definitely a $600 stock.

It' be one of like an easy call to make there. There's zero reason for it not to be 600.

My question is, how good will the market be in the next couple months? My gut is it'll be messy, but there'll be enough upside left in the market for this to be at 600. like these old you know like these old companies right the Dells Sandis these these companies that weren't that exciting for a long time have now become these really exciting names for traders in 2026 like the revival of the old dot stocks

now it's like, hey, Delt firing in all cylinders. It trades at a very low uh multiple and you can get amazing management, amazing growth in a fairly small company in terms of market cap versus what it might be if he continues to do everything he says he expects to do and buy it for a cheap price. That that's what's working today, right?

if I'm a trader and I'm looking at the next month or two, I'm still going to look at Dell and their earnings and their multiple or the fact that Dell guided almost 40% higher and this is unheard of and you can buy it at that moment.

It was like 75 points off the highs of the year. How do you not buy it?

I truly believe Dell will remain viable, specifically if it backs up into 500 today, right? I think a 30 points off highs is buyable and I think it'll be an aggressive buy anywhere in the 470s.

of this hard is planning like today because Dell had this crazy pullback yesterday. I said, "Let me tell you my plan in advance, right? I think we're definitely going to 500. We get over 500.

We're testing testing that high of 514 and then we get over that I'll be pretty small and then just plan ahead."