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Ingram Micro (NYSE:IM) is not your average high flyer IT stock. It's offering a rather safe and solid opportunity to play one segment of the IT sector. As a profitable company with EPS of $1.62 last year, and expected growth to $1.71 this year, IM offers a solid investment into the start of the earnings season.

Ingram's forward looking PE stands at 10.2, and its earnings guidance and estimates in addition to proven profitability, might be slowly catching up to Tech Data Corporation (NASDAQ:TECD). IM is expected to showcase its results for third quarter on October 25.

With expansion to new markets in Asia and cost-cutting measures of moving some jobs off shore, in addition to solid demand worldwide, IM is well positioned to be further recognized as one of the leaders in IT distribution sphere, with excellent technical and field sales expertise in its ranks. Brian Wiser, senior vice president of sales and management of Ingram Micro in North America, said recently:

Ingram Micro has established itself as a valuable bridge between IT vendors and solution-provider partners. Our focus on partner enablement and growth allows us to be the smart choice and produce tangible results for our partners and the company.

By looking at the chart below, we can see that many share this opinion. Ingram is recovering its loss, and is continuing to travel along the bullish pattern started on August 10. As you can see below, it crossed above the second bullish support line, and is now moving to test the upper bear-support at $21 (upper downward sloping line). That will be the test for IM. If it breaks that line, IM should go to at least above $21.50. At that stage, another opportunity to break above and attack its highs ($23) again will be re-evaluated. Once again, this is not your high-flyer IT stock, but rather a safe approach to a bull opportunity in a jittery market. For now, accumulate. Our very short-term price target is $21.20

Disclosure: Author has a long position in IM

Source: Ingram Micro: Play IT Safe