8×8 Inc. (EGHT)
From Top Stocks under $10
It has an unusual name, but 8×8 Inc. stock (EGHT) also has some solid upside potential, and the time is right to add it to our portfolio. This Cloud provider has big name customers and double-digit growth.
The company operates in the communications space, connecting employees of small- and midsize businesses, allowing employees to work on projects together, increasing efficiencies and communicate, using the Cloud. The average price target for the company is $11, and with its recent selloff from over $9 after its earnings miss (though revenue increased 26%), the chart is telling us it could head higher from these support levels.
It’s a little-known company, but it provides services for big names globally—General Electric, Walgreens, Intel, Lockheed Martin and SoftBank, to name a few. Given that telecoms have been the strongest performers this year, up 4% despite decline-to-flat scenarios in other sectors, it adds up to an inviting proposition for this name.
EGHT should get a lift from both tech and telecom strength, and I think the earnings miss gives us an opportunity to buy on a dip.
We will know quite quickly if the upside, which I think could be as high as $9.25, will materialize. Still, if it breaks $7.10 on the downside, we could be in freefall to $5.75, so we’ll put a stop in there to prevent losses getting out of control. Upside of 20% and downside of 7%— let’s get this trade in now.
Mandeep Rai, Top Stocks Under $10, published by Money and Markets, a Division of Weiss Research, Inc., www.moneyandmarkets.com/services/trading-services/top-stocks-under-10, issues@e.moneyandmarkets.com; 1-800-291-8545, February 12, 2015