Josh Levine of ChangeWave.com estimates that the total capacity for movement from enterprise storage to the public cloud will have been more than 400% from 2011 to 2016 and previously noted that EMC should be accumulated under $26. EMC earned $1.33 in ’13, and Standard & Poor’s estimates $1.92 in ’14 and $2.15 in ’15.
On June 27, Wells Fargo Securities “said that it expects EMC to benefit from multiple factors” including having built a strong portfolio of assets in key areas of future industry growth.
We last reviewed EMC on June 4 at $26,40, before that on Jan. 13 at $25.14 and before that Dec. 20 at $14.54 when S&P reported that an anticipated rise in revenues — driven by the increased adoption of cloud computing — created the basis for a projected steady increase in earnings. S&P still has a Strong Buy (five stars) recommendation on the stock with a 12-month price target of $31. Note: EMC also has a dividend yield of 1.71%.
Technically, since Dec. 20, EMC completed a break from a huge bullish saucer and in February flashed a golden cross. And a major bull channel has formed that could result in a long-term bull move.
Buy EMC at the market with a trading target of $32. Investors might want to hold EMC long-term for participation in the expansion of the mobile cloud. This A-plus-rated stock is an excellent investment in uncertain times for both traders and investors alike.