Bull’s Eye Report: j2 Global (JCOM)

Hitch a ride on a cloud stock

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
j2 Global Inc JCOM Internet Software & Services 7.7 +28.63% $39.04

Why We Like The Stock:

j2 Global (JCOM) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. We featured JCOM recently on the Bull’s Eye Report for May 22, though after another week of price consolidation, we actually like the stock even more given its current set-up.

On a weekly basis, JCOM is a little scary, having nearly doubled in price from May of 2012. However, if we look at the stock more recently, its short-term setup shows considerable strength and all signs are pointing to a continuation of this tech company’s rally. JCOM has been operating well above its 50-day moving average, and crossed above its short-term moving averages on Monday. Currently, the stock looks poised to make another run north of $42. We wouldn’t be buyers too far below the 50-day moving average at $39.48, but anywhere at or above that, JCOM is a great chart and looks to be a profitable short-term trade.

We Would Be Buyers:

At the current price (~$40.45), or on a pullback to the 50-day moving average ($39.50).

Company Profile:

j2 Global, Inc. is a provider of cloud services to businesses of all sizes, from individuals to enterprises. The company operates in two segments: business cloud services and digital media. The company’s digital media business segment consists of the Web properties and business operations of Ziff Davis, Inc. (Ziff Davis). The company’s cloud services and solutions include fax, voice and unified communications, email and customer relationship management, online backup, global network and operations, and customer support services.

Stock Rating: 7.7

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

j2 Global – Last Three Months

JCOM 1 Bulls Eye Report: j2 Global (JCOM)

j2 Global – Last 12 Months

JCOM 2 Bulls Eye Report: j2 Global (JCOM)

j2 Global – Last Five Years

JCOM 3 Bulls Eye Report: j2 Global (JCOM)

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At the time of publication the editor and affiliated companies own the following positions: JCOM

Note: Positions may be bought or sold while this publication is in circulation without notice.


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