This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EDS Back on Track

After several years of struggle, Electronic Data Systems (EDS) appears to have turned a corner.

Shares in the Plano, Texas-based IT services giant recently broke through peaks set a year ago, as investors are gaining confidence that the company has started to focus on clearing the way to further growth.

"The company has gotten through a number of problems, and they've gotten their house in order," says Standard & Poor's equity analyst Dylan Cathers. "They've finished restructuring, steadily increased their offshore capabilities, and their balance sheet is in shape."

EDS set a recent 52-week high last month following a meeting with analysts that sparked an upgrade by RBC Capital's Cynthia Houlton.

"Our rating change and higher price target reflect a shift by the company to growth for the first time since 2002," Houlton wrote. She raised her price target to $33 from $26. Her firm has provided EDS with nonsecurities services in the past 12 months.

On Tuesday, EDS closed up 1.5% to $27.78 after pulling back nearly 7% from its 52-week high of $29.94.

In its latest quarter , EDS beat the Street's forecast on the top and bottom lines and nearly doubled its profit over the comparable period in 2005. Signings hit $7.6 billion for the quarter vs. $5.3 billion in the same period last year.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EDS $1.36 15.25%
AAPL $112.10 -0.73%
FB $90.26 0.59%
GOOG $626.00 -1.80%
YHOO $33.14 -1.63%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs