Dell: Buy Now To Ride Its Growth And Margin Tailwinds (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Dell Technologies has strong growth tailwinds due to new products and untapped enterprise market in AI servers. There is also a PC refresh cycle coming into play later this year.
• Dell has a strong and growing market share position in servers and storage markets. A revenue mix shift toward these segments offsets its market share struggles in the PC business.
• The revenue mix shift paves the way for overall EBIT margin expansion going ahead.
• DELL stock is now trading at an attractive discount vs. peers, and the relative technicals vs S&P 500 are bullish.
• A key risk to watch for is Dell's worsening working capital profile and eroding operating cash flow margins.

Read the full article here.