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.
Hopkinton, Mass. (1979)
Computer storage and peripherals
Chairman/CEO Joseph Tucci
CFO David Goulden
Return on Equity (Average, Past 3 Years)
$4.76 billion / $3.43 billion
Hewlett-Packard (NYS: HPQ)
IBM (NYS: IBM)
Microsoft (NAS: MSFT)
Sources: S&P Capital IQ and Motley Fool CAPS.
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."
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At the time thisarticle 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.