Top Stock to Buy #5 – 8×8 (EGHT)
8×8 (EGHT) is a telecommunications company that develops services for Internet protocol (IP), telephony and video applications. It also offers Web-based conferencing and cloud-based computing services. The company was ranked 23rd out of 100 on Forbes’s 2013 list of “America’s Best Small Companies.”
I first recommended the stock on Nov. 17, 2011, at $3.85, and several times since as a key cloud computing holding. On Aug. 26, at $9.40, I said, “The bull channel formed following the breakout in late May provides added technical support. On July 31, and again on Aug. 21, the company was granted new patents related to its conferencing technologies.”
Technically, EGHT is trading in a powerful bull channel that began in April. It has support at its 50-day moving average at $10.14, and that would be the ideal spot to buy it on a pullback. But despite the overall market uncertainties, this stock has responded by holding its 20-day moving average at $10.76. The trading target remains $12, but long-term investors should buy now and hold indefinitely for possible substantial returns.