Symantec Corporation (NASDAQ: SYMC) provides
software and services that address risks to computer security, information availability, policy compliance and system performance. Its programs protect against viruses, establish firewalls, filter content, detect intrusions, manage remote access and provide virtual private networking. The firm also offers security assessment, consulting and outsourced security management. Symantec has operations in more 40 countries. McAfee (NYSE: MFE) and Microsoft (NASDAQ: MSFT) are major competitors.
The company pleased investors last week, when it reported fiscal Q4 EPS of 36 cents and revenues of $1.55 billion. Analysts had been expecting 34 cents and $1.53 billion. Management also guided Q1 EPS to 34-36 cents (31 cent consensus) and Q1 revenues to $1.555-$1.595 billion ($1.5B consensus).
SYMC shares
popped into a bullish "flag" consolidation pattern on the news. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with six "strong buys", six "buys", twenty "holds" and one "sell". The SYMC Price to Sales ratio (2.80), Price to Book ratio (1.50), Price to Cash Flow ratio (8.84), Price to Free Cash Flow ratio (10.66) and EPS Growth rate (71.43%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 90% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index and the AMEX Internet Index. Over the past 52 weeks, it has traded between $14.54 and $21.32. A stop-loss of $16.65 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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