Traders Get Another Chance to Ride This Cloud Stock Up

Profit-taking has driven 8x8 Inc. down to its bullish support line

   

8×8 Inc. (NASDAQ:EGHT) — This telecommunications company develops services for Internet protocol (IP), telephony and video applications. It also offers Web-based conferencing and cloud-based computing services.

Gross profits margins, at 72.1%, are very high, cash flow in the last quarter has increased, and its return on equity far surpasses that of the industry average and the S&P 500. On Jan. 24, the company reported fiscal Q3 earnings of $0.05, which was in line with analysts’ estimates and 25% higher than the same quarter last year. Consensus earnings estimates are for $0.19 in fiscal year 2013 and $0.28 in fiscal year 2014.

The Trade of the Day first recommended EGHT on Nov. 15, 2011, at $3.84. Following the recent quarterly report, it appears many stockholders decided to cash in profits, which drove the stock down to the bullish support line at just under $6.50.

Buy EGHT for a trade to $8 or as a key “cloud” holding.

EGHT Chart
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Trade of the Day Chart Key


Article printed from InvestorPlace Media, http://investorplace.com/2013/02/trade-of-the-day-8x8-inc-nasdaq-eght-2/.

©2016 InvestorPlace Media, LLC

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