With shares up about 32% over the past three months, how should you game Dell ahead of earnings on Thursday?
It seems investors have turned somewhat bullish on the company since Michael Dell resumed his role as chief executive in 2007.
Despite Dell’s cachet, his company has struggled during the downturn as businesses hold off on big ticket purchases, and cash strapped consumers opt for cheaper models such as netbooks which are smaller and less profitable.
Dell, the No. 2 PC maker in the world behind Hewlett-Packard Co., has said demand for computers, servers and other technology appears to have stabilized, but did not hazard a guess as to when the global PC market might turn around.
What should you expect from earnings?
Analysts surveyed by Thomson Reuters expect Dell to post a profit of 23 cents per share on $12.6 billion in revenue.
Broadpoint AmTech analyst Dinesh Moorjani wrote in a research note Monday that the quarter "likely ended better than anticipated as PC sales were stronger than expected in the month of July."
Moorjani upgraded Dell to "Buy" from "Neutral," writing that he is more optimistic about upcoming PC demand and that he thinks the shift to lower-priced PCs has "played out for the most part."