EMC’s Technical Signals Are Screaming ‘Buy’

EMC's latest positive sign - the formation of a major bull channel

   
EMC’s Technical Signals Are Screaming ‘Buy’

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

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.

070814 emc buy bull channel 300x195 EMC's Technical Signals Are Screaming 'Buy'
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chart key EMC's Technical Signals Are Screaming 'Buy'

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.


Article printed from InvestorPlace Media, http://investorplace.com/2014/07/emc-stock-trade-of-the-day/.

©2014 InvestorPlace Media, LLC

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