Trade-Ideas: EMC Corporation (EMC) Is Today's Unusual Social Activity Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified EMC Corporation ( EMC) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified EMC Corporation as such a stock due to the following factors:

  • EMC has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 3.69 mentions/day.
  • EMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $454.8 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on EMC:

EMC Corporation, together with its subsidiaries, develops, delivers, and supports information infrastructure and virtual infrastructure technologies, solutions, and services. The stock currently has a dividend yield of 1.6%. EMC has a PE ratio of 20.7. Currently there are 26 analysts that rate EMC Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for EMC Corporation has been 21.3 million shares per day over the past 30 days. EMC has a market cap of $53.0 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.68 and a short float of 3.3% with 4.04 days to cover. Shares are down 0.3% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates EMC Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.2%. Since the same quarter one year prior, revenues slightly increased by 5.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $1,712.80 million or 1.45% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.31%.
  • EMC CORP/MA' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EMC CORP/MA increased its bottom line by earning $1.23 versus $1.10 in the prior year. This year, the market expects an improvement in earnings ($1.86 versus $1.23).
  • The gross profit margin for EMC CORP/MA is rather high; currently it is at 68.48%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EMC's net profit margin of 10.76% significantly trails the industry average.
  • Although EMC's debt-to-equity ratio of 0.07 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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