One of the best ways to spot opportunity is by keeping tabs on stocks being upgraded.
Oftentimes, a firm will upgrade a stock if the financial health of the covered stock has become favorable. Or, perhaps they liked what the covered company said in a recent meeting. Or maybe they’re seeing favorable emerging trends in the industry. Whatever the case may be, upgrades will often lead to increased buying interest from investors.
Look at Dell (DELL), for example.
Goldman Sachs just reiterated its buy rating on Dell with a $135 price target.
“Enterprise and sovereign AI opportunities are in earlier stages of adoption, and the company continues to optimize its organization to address AI demand across customer verticals and regions,” said Goldman Sachs, as quoted by CNBC. “AI server margins should improve over time through a greater mix of higher margin services revenue and a diversification to a larger number of AI server customers.”
Technically, Dell is oversold after dropping from $127 to $113.46, where it appears to have found strong support. From here, we’d like to see Dell retest $127 again initially.