Cloud Stock Poised to Take Off to New Heights

It appears a major bull channel is forming in EMC


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.

ChangeWave Research’s Josh Levine estimates the total capacity for movement from enterprise storage to the public cloud will be more than 400% from 2011 to 2016, and he said it should be accumulated under $26.

S&P reported that an anticipated rise in revenue driven by the increased adoption of cloud computing is the basis for its projected earnings increases. It estimates operating EPS of $1.92 in 2014 and $2.15 in 2015, with a “five-star strong buy” rating and 12-month price target of $31.

I last reviewed EMC on March 20, just under $28. Early in May, Wells Fargo (WFC) and Morgan Stanley (MS) published favorable reports on the stock.

In December, EMC completed a break from a huge bullish saucer, and in February, it flashed a golden cross. It appears that a major bull channel is forming that could result in a long-term bull market.

Buy EMC under $26 with a trading target of $32. Investors may want to hold shares long term for participation in the expansion of the cloud. The stock has a dividend yield of 1.7%.

06 03 14 emc 300x190 Cloud Stock Poised to Take Off to New Heights
Click to Enlarge

chart key 300x84 Cloud Stock Poised to Take Off to New Heights

Article printed from InvestorPlace Media,

©2015 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.