5-Star Stocks Poised to Pop: EMC

Before you go, we thought you'd like these...
Before you go close icon

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 (NYS: EMC) has earned a coveted five-star ranking.

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

EMC facts

Headquarters (Founded)Hopkinton, Mass. (1979)
Market Cap$50.2 billion
IndustryComputer storage and peripherals
Trailing-12-Month Revenue$19.3 billion
Management

Chairman/CEO Joseph Tucci

CFO David Goulden

Return on Equity (Average, Past 3 Years)10.2%
Cash/Debt$4.76 billion / $3.43 billion
Competitors

Hewlett-Packard (NYS: HPQ)

IBM (NYS: IBM)

Microsoft (NAS: MSFT)

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

On CAPS, 96% of the 3,673 members who have rated EMC believe the stock will outperform the S&P 500 going forward. These bulls include mpdelbuono and JohnStuartMill.

This past summer, mpdelbuono noted that EMC "has a very large (undervalued) stake in VMware." Our CAPS member concludes: "That, combined with the level of storage requirements for the significantly growing cloud computing market, suggests EMC's growth should have huge potential."

Over the next five years, in fact, EMC is expected to grow its bottom line at a solid rate of 17% annually. That's faster than gorilla rivals HP (8%), IBM (12%), and Microsoft (11%).

CAPS member JohnStuartMill expands on the EMC outperform argument: "One of the market leaders (and continuing to gain market share) for the "cloud" with good cash flow to weather through the current tough market conditions (with >50% gross margins). The long term cloud storage trends for audio, video, and data storage bode well for this young industry."

What do you think about EMC, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackEMC?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of EMC, IBM, and Microsoft. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Microsoft, as well as buying shares of VMware. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners