This Day On The Street
Continue to site right-arrow
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

Sell Infosys, Buy Intel and Yahoo!

The Street will be looking for 37 cents in earnings per share on revenue of $12.8 billion. Earnings are expected to fall almost 8%, while revenue is seen rising less than 2%. Given the deficits Intel is working to overcome, expectations have come down over the past several quarters. Essentially, no one is expecting a miracle.

What investors want to see are signs that the worst is over. Aside from beating revenue and earnings estimates, management will need to guide with more confidence that business conditions are expected to improve.

In that regard, management has laid out plans to grow the chip business in emerging markets and reinvesting cash flow into research and development. Until Intel shows that it has taken a drastic step backward, the stock remains a buy and management deserves more time.

Finally, we have Yahoo! (YHOO - Get Report), which also reports first-quarter earnings Tuesday. With constant news surround a possible IPO for Alibaba, in which Yahoo! owns 24% stake, investors sometime forget that Yahoo! still has strong businesses that CEO Marissa Mayer is working to grow.

There are questions with the company's direction. Investors are not sure if Yahoo! wants to be strictly a media company that focuses on content delivery or a technology company with an innovative strategy. Although Yahoo! continues to be misunderstood, Marissa Mayer has a strong grasp of what Yahoo! needs to move forward. On Tuesday, she's certain to be pressed for details.

The Street will be looking for 37 cents in earnings per share on revenue of $1 billion. According to some estimates, both figures are expected to be flat on a year-over-year basis. But don't mistake this for a disappointment. Yahoo! is still in the early stages of its rebirth under Mayer.

Given the 15% decline the stock has suffered in recent weeks, I see this as a strong buying opportunity. Yahoo! still has the ability to post growth in key areas like online advertising and mobile monetization. The current stock price assumes Mayer won't figure it out. But with strong assets like its Finance and Sports businesses, which Mayer can use to become more aggressive, this is the wrong bet to place.

At the time of publication the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

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!
INFY $35.50 1.60%
INTC $31.94 6.20%
YHOO $45.08 1.40%
AAPL $123.22 -0.82%
FB $83.30 0.35%


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