Brocade Communications Systems Inc  (BRCD) Trade Now »     Rate BRCD  -  Discuss BRCD  -  Add to Watch List        

Filed under: Forecasts, Newsletters, S and P 500, DJIA, Stocks to Buy

"The technical backdrop has taken a distinctly bullish turn," says Michael Ashbaugh in MarketWatch's The Technical Indicator. Here, he looks at the market averages and a trio of stock ideas.

"Perhaps most obviously, the S&P has staged a 10-to-1 rally, and a 28-to-1 spike, from its 200-day moving average. And by any measure, this raises a bullish technical flag.

BRCD is undervalued, looking only at valuation relative to its industry.

* BRCD has a Projected P/E of 8.89
* BRCD's Industry (Data Storage Devices) has an average Projected P/E of 16.31
* Implies a Projected Stock Price of $10.60

* BRCD has a projected earnings growth rate of 11.12%
* BRCD has a PEG of 0.80
* BRCD's Industry (Data Storage Devices) has an average Projected PEG of 1.32
* Implies a Projected Stock Price of $9.54

Source of the analysis and calculations:

http://www.freestockvalueranker.com/?method=peg_pe&symbol...

BRCD has solid fundamentals and very strong intermediate term projected growth.  As an infrastructure provider, they have been oversold on recession worries.  Manageable downside risk, high (est. 50% or better) upside opportunity in 1 year.

Also a Cramer favorite at end of 2007 - not sure of his current view.