What's more, not only did Intel log sequential revenue growth arriving at 5% but remarkably, its PC revenue rose a respectable 4%. Although I will not suggest that the company is free and clear from any struggles, there are positives to consider.
Intel will be reporting its third-quarter earnings on Tuesday after the market closes, and analysts are expecting EPS of 50 cents on revenue of $13.2 billion. These would represent annual declines of 23% and 7%, respectively.
The stock is currently trading near its 52-week low of $21.48 -- almost 40% below some analysts' price targets, which have been as high as $29.71. As the stock continues to trade at what I believe to be a considerable discount with a price-to-earnings ratio of 9, there is the possibility that Intel can see the $25 level by year's end. If you are a value investor looking for a safe investment in technology and one that pays a respectable dividend, you should consider Intel.
Infosys (INFY) disappointed investors last week by reporting results that fell short of analysts' expectations. The company reported earnings of 75 cents a share on revenue of $1.8 billion, missing estimates for EPS of 77 cents and revenue of $1.9 billion. Making matters worse was that the company cut its forecasts for net income through the first quarter of 2013 from $3.03 per share to $2.97 due to changes in currency values.There continue to be growing concerns that the company is unable to execute effectively as it faces headwinds stemming from weak IT spending. Consequently, it is had no choice but to offer an outlook that is weaker than many analysts' predictions. That the quarter yielded the smallest number of new customers (39) in more than a year suggests that the company is having a difficult time growing revenues, a challenge that may last through the second quarter of 2013. I would sell the stock at this point and look for a re-entry when it trades for less than $40. The company needs to demonstrate that it can put together two consecutive quarters of revenue and EPS growth before the stock can show any signs of life.
Hold Johnson & Johnson
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV