Trade of the Day: SYMC Stock is a Top ‘Buy’ on a Pullback

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Symantec Corporation (NASDAQ:SYMC) — This leader in security software and services offers solutions that are easy to use and effective in protecting against computer viruses and malware.

Management said consumer security turned a corner in its fiscal fourth quarter, and that the spin-off of its data-storage and recovery business, Veritas, does not violate IRS safe harbors.

If true, Credit Suisse Group AG (ADR) (NYSE:CS) analysts claim that a two-year tax liability window could result in a windfall for Symantec and that current earnings estimates are likely conservative. They have a price target of $30 on SYMC stock.

S&P Capital IQ analysts also note the benefit of spinning off Veritas. In March, they upgraded SYMC stock to “buy” from “hold” with a target of $27.

Some readers have asked me what stocks I would consider “buys” on a pullback. SYMC is near the top of that list due to the enormous potential this laggard possesses if the Veritas spin-off reaps the tax benefits mentioned by Credit Suisse.

SYMC stock looks strong from a technical point of view, trading in a clearly defined bull channel with support under $24. But MACD is currently “overbought,” and the 50-day moving average recently crossed down through the 200-day, which is a signal of a pending pullback.

Buy SYMC stock under $24 with a trading target of $27 for a potential gain of 12.5%. Long-term investors will want to hold for the possibility of a revenue windfall that could lead to shares blowing past all current trading objectives.

SYMC Stock Chart
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Article printed from InvestorPlace Media, https://investorplace.com/2015/05/symantec-corporation-symc-stock-trade-of-the-day/.

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