Is EMC an Outperform?

With shares of EMC Corporation (NYSE:EMC) trading at around $24.12, is EMC an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

What you read in the next paragraph might be important, but it won’t be nearly as entertaining as what you will find further below. So, be patient and you will be rewarded. Then again, it might depend on your taste when it comes to white-collar workers performing an EMC dance video. If you don’t find it entertaining, then perhaps you can learn something from it. The lyrics describe exactly what EMC does, only with a lot more energy than what you would read in a company description.

EMC offers cloud computing, big data, trusted IT solutions, and more. The company is well-positioned in these areas and is likely to experience a bright future. The current economic environment might lead to some turbulent times, but EMC is a long-term winner. The stock is also loved by investors and hedge funds alike. If you’re looking for a catalyst for the stock’s movement, then you might not find anything significant other than bullish option activity. However, over the long haul, this is a highly diversified company with steadily improving margins, a strong balance sheet, and excellent cash flow. The stock gapped down a few weeks ago due to poor guidance, and the average price target was lowered to 29.83 from 30.42, but investing in EMC should be about the long-term, as in years.

What did you think of the video? Let’s take a look at some more important numbers prior to forming an opinion on this stock.