Please ensure Javascript is enabled for purposes of website accessibility

Why EMC Is Poised to Bounce Back

By Brian D. Pacampara, CFA - Apr 4, 2013 at 10:50AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in this 5-Star.

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 (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.

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

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dell EMC Stock Quote
Dell EMC
EMC
HP Inc. Stock Quote
HP Inc.
HPQ
$34.77 (-0.83%) $0.29
International Business Machines Corporation Stock Quote
International Business Machines Corporation
IBM
$133.80 (2.00%) $2.63

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
334%
 
S&P 500 Returns
117%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.