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 12x the normal benchmarked social activity for this time of the day compared to its average of 1.20 mentions/day.
  • EMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $466.6 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 1.7%. EMC has a PE ratio of 19.1. Currently there are 24 analysts that rate EMC Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for EMC Corporation has been 18.9 million shares per day over the past 30 days. EMC has a market cap of $49.1 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.64 and a short float of 3.2% with 3.97 days to cover. Shares are down 4.2% year to date as of the close of trading on Tuesday.

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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 lackluster performance in the stock itself.

Highlights from the ratings report include:
  • EMC's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 4.9%. 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 increased to $1,792.00 million or 24.62% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.99%.
  • 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 ($1.80 versus $1.23).
  • The gross profit margin for EMC CORP/MA is rather high; currently it is at 69.58%. EMC has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.57% trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.32, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.26 is sturdy.

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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