This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Buy Alcoa, Intel; Sell Infosys; Hold Johnson & Johnson

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.

Sell Infosys

Infosys (INFY - Get Report) 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

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AA $12.69 -1.50%
INFY $35.50 1.60%
INTC $31.94 6.20%
JNJ $100.30 0.16%
AAPL $123.22 -0.82%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs