Computer Sciences Corporation
It's been a mixed year for Computer Sciences Corporation (CSC). The $4 billion IT services firm is up on the year, but it's seen a large decline in share prices since the stock peaked in February. This morning, CSC reported a first-quarter earnings beat and has gained over 15% so far on the news.
Einhorn and company certainly saw additional upside in CSC. The firm added the position to its portfolio at the start of the year, picking up 2.4 million shares worth almost $72 million at last count.CSC is involved in everything from consulting to systems integration and business outsourcing; if it's related to enterprise IT, it's probably part of CSC's service offerings. The firm is also a core contractor of IT services to the Federal Government, a lucrative business that others (especially defense contractors) are vying for right now. >>5 Hated Stocks Set to Soar on Earnings While that increased competition over nearly a third of CSC's revenue stream will pose some challenges, the firm's entrenched position in the IT contracting space should give it an edge over rivals who are only just now starting their IT contracting arms. Meanwhile, CSC's commercial business is starting to catch some tailwinds as enterprise IT spending ramps back up. Pipeline bookings of around $14 billion should help to smooth out the economic hiccups that are happening all around right now.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV