Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, computer giant Dell (Nasdaq: DELL ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Dell's business and see what CAPS investors are saying about the stock right now.
Dell facts
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Headquarters (founded)
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Round Rock, Tex. (1984)
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Market Cap
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$25.83 billion
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Industry
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Computer Hardware
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Trailing-12-Month Revenue
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$57.37 billion
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Management
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Founder/Chairman/CEO Michael Dell
CFO Brian Gladden
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Compound Annual Revenue and Net Income Growth (over last three years)
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0.3% and (17%)
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Competitors
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Hewlett-Packard (NYSE: HPQ )
IBM (NYSE: IBM )
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CAPS Members Bearish on DELL Also Bearish on
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Ford Motor (NYSE: F )
Microsoft (Nasdaq: MSFT )
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CAPS Members Bullish on DELL Also Bullish on
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Apple (Nasdaq: AAPL )
General Electric (NYSE: GE )
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.
Over on CAPS, fully 1,605 of the 5,589 members who have rated Dell -- some 29% -- believe the stock will underperform the S&P 500 going forward. These bears include All-Star Fenix2606, who is ranked in the top 0.1% of our community, and lschneider03.
A few months ago, Fenix2606 warned our community that Dell "just can't compete in this sector anymore." Our All-Star continues: "They lack the innovation of Apple and HP and have been too slow to adapt to consumer preferences. … Couple this with lower disposable income, and Dell has plenty of room left on the downside."
In an earlier pitch, lschneider03 expands on Dell as rather direct way to underperform:
This company is still living in its past and believes that its direct to consumer distribution strategy sets it apart from its competitors. At one time it did, but no longer. Dell basically came into the industry, shook it up, flushed a lot of the excess profits of the industry down the drain with its lower pricing (due to its distribution strategy) and then they forgot to innovate after that. … Dell is a pretender and their best days will always be in their rear view mirrors.
What do you think about Dell, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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