Awaiting Word From Three Tech Biggies

Technology ended last week 12.6% undervalued according to my models, making it the cheapest sector in the market. In second place was consumer durables at 5.5% undervalued. Overvalued sectors include basic industry at 5.5%, energy at 8.5% and public utilities at 5.2%. Comparing valuations suggests that investors should continue to rotate into technology stocks.

This week, we have a few big hitters reporting earnings in the tech sector.

Cisco Systems(CSCO Quote) reports after the close Wednesday with an expected EPS of 24 cents. Three months ago, Cisco warned that it wouldn't meet prior guidance for the current quarter. I have reasons to believe that Cisco will beat the consensus this time. ...