Buy This Cloud Stock as Soon as It Descends

by Sam Collins | January 14, 2014 1:31 am

Buy This Cloud Stock as Soon as It Descends

EMC Corp. (EMC[1]) — One of the world’s largest suppliers of enterprise storage systems, EMC also owns 80% of VMware (VMW[2]), 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[3] 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%.

01 14 14 emc 300x188 Buy This Cloud Stock as Soon as It Descends
Click to Enlarge

 chart key 300x84 Buy This Cloud Stock as Soon as It Descends[4]

Endnotes:
  1. EMC: http://studio-5.financialcontent.com/investplace/quote?Symbol=EMC
  2. VMW: http://studio-5.financialcontent.com/investplace/quote?Symbol=VMW
  3. on Dec. 20: http://investorplace.com/2013/12/trade-day-emc-corp-emc-2/
  4. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2014/01/trade-day-emc-corp-emc-3/
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