Dell's recent results are solid, but it's what analysts estimate for the next several years that is most exciting. Revenue grew 9% in the second quarter of fiscal 2025 to $25 billion, while diluted earnings per share (EPS) rose 86% to $1.17. As expected, the Infrastructure Solutions Group, which serves data centers, hit record sales of $11.6 billion on an impressive 38% YoY growth. Remarkably, analysts expect $7.87 in EPS this fiscal year and then even more:

This is why 20 of 25 analysts rate the stock a buy or strong buy with an average target of $145 per share, or 10% above the stock's price at the time of this writing. However, analyst estimates may not yet account for the potential of Dell to take market share from Supermicro. This gives the stock more room to run.

Dell is also attractive because it pays dividends and repurchases stock. The company intends to return 80% of adjusted free cash flow to shareholders and grow the dividend, which currently yields 1.3%, by 10% annually. Adjusted free cash flow hit $5.6 billion in fiscal 2024 and $3.7 billion through two quarters of fiscal 2025. Free cash flow should grow significantly along with earnings.