Why EMC Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, data-storage specialist EMC (NYSE: EMC  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at EMC and see what CAPS investors are saying about the stock right now.

EMC facts

Headquarters (founded)

Hopkinton, Mass. (1979)

Market Cap

$49.6 billion

Industry

Computer storage and peripherals

Trailing-12-Month Revenue

$21.7 billion

Management

Chairman/CEO Joseph Tucci

COO/CFO David Goulden

Return on Equity (average, past 3 years)

12.8%

Cash/Debt

$6.2 billion / $1.7 billion

Competitors

Hewlett-Packard

Hitachi Data Systems

IBM

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 3,837 members who have rated EMC believe the stock will outperform the S&P 500 going forward.

A little over a month ago, one of those Fools, NovaTodd, succinctly summed up the EMC bull case for our community:

Since 2007, FCF per share has nearly doubled from $1.24 to $2.46; that's a five year [compound annual growth rate] of 19%. Borrowing Chuck Akre's observation that one's return on an investment should in theory approximate the rate at which it compounds owner earnings, EMC looks like a solid investment selling at an attractive price. Throw in the company's competitive position in cloud computing and big data and you get a solid long term pick.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, EMC may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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  • Report this Comment On April 11, 2013, at 7:16 AM, koolpapazulu wrote:

    Perhaps NetApp should be in the competitor list instead of HP? NetApp is EMC's biggest competitor.

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