Buy This Cloud Stock as Soon as It Descends

EMC completed a break from a huge bullish saucer and is likely due for a pullback

   

EMC Corp. (EMC) — One of the world’s largest suppliers of enterprise storage systems, EMC also owns 80% of VMware (VMW), an industry-leading provider of server virtualization software. 

S&P estimates the company will earn $1.80 in 2013, $2.08 in 2014, and $2.31 in 2015. I last reviewed EMC on Dec. 20 when S&P reported that it anticipated a rise in revenues driven by the increased adoption of cloud computing as a basis for the projected steady increase in earnings. It has a “strong buy” rating on the stock with a 12-month price target of $32.

Since then, EMC has completed a break from a huge bullish saucer by closing above both its 50-day and 200-day moving averages. And while the Dow industrials were hit with a triple-digit decline on Monday, EMC only lost 18 cents. 

But a pullback is likely, so buy EMC at $24.50 with a trading target of $27. Investors may want to buy EMC for S&P’s 12-month price target of $32. The stock is currently yielding 1.6%.

EMC Chart
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Article printed from InvestorPlace Media, http://investorplace.com/2014/01/trade-day-emc-corp-emc-3/.

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