An exchange traded fund following large tech stocks listed on the Nasdaq closed slightly positive Tuesday while the major indicators slipped and traders keyed on Dell (NasdaqGS: DELL) earnings and slowing momentum in Apple (NasdaqGS: AAPL) shares.
Dell shares rose nearly 5% in after-hours trading Tuesday as investors cheered higher quarterly earnings at the tech company. First-quarter profit came in higher than expected.
Auriga analysts have a buy rating on Dell and were looking for a “solid quarter” in an earnings outlook.
“Longer term, we believe Dell can grow its top-line roughly in-line with overall IT spending as it transforms itself into a full-service enterprise vendor,” the analysts wrote.
“The real allure to investors is likely to be the slow and steady margin expansion story that accompanies that transformation,” Auriga said. “While there will likely be bumps in the road along the way, attractive free cash flow, returns on capital and valuation suggest to us that shares remain a good buy for value-oriented investors.”