Is Dell a good stock to buy right now? For the past couple of years, Dell (DELL) has been dealing with the headwinds created by Apple’s (AAPL) breathtaking expansion in the PC market. Despite the decline in company’s revenue from consumer & public segments in FY12, the company has managed to achieve a growth of 26% in its EBIT. The growth mainly emanated from company’s aggressive acquisition strategy which facilitated the growth in its enterprise solutions and services business.
However we have recommended a short-term ‘hold’ and a long-term “buy” on Dell’s stock as we believe that, going forward, globally Dell will be exposed to a range of significant risks including: weakened demand of Dell’s product in consumer & public segments, intense competition, higher reliance on a single or limited vendors for products & components for Dell’s product, higher dependence on continuous technological advancements and greater positive co-relation between company’s profitability and global economic conditions.
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