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.

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

  • EMC has 15x the normal benchmarked social activity for this time of the day compared to its average of 6.77 mentions/day.
  • EMC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $379.6 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 develops, delivers, and supports information infrastructure and virtual infrastructure technologies, solutions, and services. The stock currently has a dividend yield of 1.8%. EMC has a PE ratio of 2. Currently there are 17 analysts that rate EMC a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for EMC has been 13.0 million shares per day over the past 30 days. EMC has a market cap of $48.5 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.16 and a short float of 1.2% with 1.60 days to cover. Shares are down 16.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates EMC as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth significantly trails the industry average of 32.7%. Since the same quarter one year prior, revenues slightly increased by 2.4%. 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.
  • Although EMC's debt-to-equity ratio of 0.27 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 0.90 is somewhat weak and could be cause for future problems.
  • The gross profit margin for EMC CORP/MA is rather high; currently it is at 67.22%. Regardless of EMC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EMC's net profit margin of 4.48% is significantly lower than the industry average.
  • Net operating cash flow has decreased to $1,080.00 million or 19.28% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of EMC CORP/MA has not done very well: it is down 6.67% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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