Cloud Stock Poised to Take Off to New Heights

by Sam Collins | June 3, 2014 2:29 am

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.

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[3], just under $28. Early in May, Wells Fargo (WFC[4]) and Morgan Stanley (MS[5]) 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%.

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Source URL: https://investorplace.com/2014/06/trade-day-emc-corp-emc-5/

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