This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.
Tech stocks are taking a beating lately, as more and more companies scale back on their IT spending. While it may be foolhardy to bet on any significant short-term rallies for this struggling group, there's probably no better time than the present to dive into a long-term play. With BMC Software (NYSE: BMC) approaching key support levels, this is one stock worth looking into.
While many major technology concerns have provided weak or slashed forecasts for the coming quarters (Cisco, anyone?), BMC recently raised its fiscal 2008 earnings guidance. The company now expects fiscal-year profits of $2.15 to $2.25 per share, up from its previous outlook of $2.10 to $2.20 per share. BMC also exceeded second-quarter profit expectations in its October 30 report -- overall, this is one tech name that's no slouch in the earnings department.
With BMC holding up strong in a tough environment, it's no wonder that Raymond James analyst Michael Turits recently upgraded the shares from Outperform to Strong Buy. "We expect ... BMC to continue to benefit from the relative resilience of the mainframe market," Turits wrote in a note to clients, adding that "customers at the [CA World] conference indicated no slowing in mainframe capacity growth planning."
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
