Will Big Technology Perform or Crash on Earnings?

NEW YORK ( TheStreet) -- This is a partial list of must-watch technology stocks reporting earnings the week of July 19. Here you will find the highest volume stocks capable of making headlines.

AMD Chart AMD data by YCharts

Advanced Micro Devices (AMD)

Who They Are: AMD trades an average of 19.2 million shares per day with a marketcap of $3.4 Billion.
52-Week High: $8.25
52-Week Low: $4.53
Book Value: $1.50
Float Short: 14.71%
Price To Book: 3.25

AMD is expected to report weak second-quarter earnings after the market closes on July 19. The consensus estimate is currently 8 cents a share, down a penny (11.1%) from 9 cents in the same period last year. Anyone who has looked at an AMD chart recently knows much of the loss is from July 9, when the company said the earnings release will look bleak.

The trailing 12-month price-to-earnings ratio is 8.9 and the mean fiscal-year estimated P/E is 9.21, based on earnings of 53 cents a share this year. With Intel ( INTC) and Nvidia ( NVDA) gaining market share at AMD's expense, 53 cents a share may be optimistic.

AMD beat estimates in the last four quarters, but there is no reason to believe it will again after its earnings warning a few days ago.

Management has predicted an improvement in year-over-year revenue. Revenue was $6.49 billion last fiscal year, compared to $5.40 billion the previous year. The bottom line shows rising earnings year-over-year of $471 million last fiscal year, compared to $376 million the previous year.

AMD last released earnings on April 19, and the closing price before then was $7.97. Since then, its shares have fallen nearly 39%, with a 15% drop this month alone. AMD has reached oversold status on my charts, and I will look for put options to sell in front of earnings to capture premium and expected price appreciation.

MSFT Chart MSFT data by YCharts

Microsoft (MSFT)

Who They Are: Microsoft was founded in 1975 and trades an average of 36 million shares per day with a market cap of $246.1 billion.
52-Week High: $32.85
52-Week Low: $23.98
Book Value: $8.17
Price To Book: 3.58

Microsoft is expected to report weak fourth-quarter earnings after the market closes on July 19. The consensus estimate is currently for 63 cents a share, a decline of 6 cents (8.7%) from 69 cents in the same period last year.

Analysts more or less love Microsoft. Currently, MSFT has 19 buy recommendations out of 27 analysts covering the company and 8 holds. No analyst in their right mind recommends selling. The stock has appreciated 10% in the last year, and the average analyst target price for MSFT is $35.82.

The trailing 12-month P/E is 10.7, and the mean fiscal year estimate P/E is 9.51, based on earnings of $3.08 a share this year. Investors are receiving 80 cents in dividends for a yield of 2.73%.

In the last month, the stock has climbed 0.58%. With Windows 8 about to come out and a zero growth-to-earnings ratio priced in, it's hard to lose with softy. Oh, did I mention the 2.73% dividend the fine programmers in Seattle provide for investors? For longer-term investors, Microsoft will let you sleep at night and put cash in your pocket.

For the same fiscal period year-over-year, revenue has improved to $69.94 billion last fiscal year, compared to $62.48 billion in the previous year. The bottom line has rising earnings year-over-year of $23.15 billion last fiscal year, compared to $18.76 billion in the previous year.

INTC Chart INTC data by YCharts

Intel (INTC)

Who They Are: Intel was founded in 1968 and trades an average of 29.6 million shares per day wiht a market cap of $127.7 billion.
52-Week High: $29.18
52-Week Low: $19.19
Book Value: $9.34
Price To Book: 2.71

Investors expect second-quarter results after the market closes on July 17. The mean estimate is currently 52 cents a share, a decline of 7 cents (11.9%) from 59 cents in the same period last year.

Analyst opinion is mixed with this company. Most analysts surveyed don't believe a buy or a sell recommendation should be made at this point. Right now, INTC has 17 buy recommendations out of 39 analysts covering the company, 20 holds, and two sells. The stock has appreciated 12.9% in the last year, and the average analyst target price for INTC is $29.63.

The trailing 12-month P/E is 10.5, the mean fiscal year estimate P/E is 10.31, based on earnings of $2.46 a share this year. Investors are receiving 84 cents in dividends for a yield of 3.31%.

Intel shares are under pressure. I would love a chance to pick up shares again under $22, as I did last year by selling puts. Like with Microsoft, I like buying Intel on dips, an especially good approach for long-term investors.

Investors have been rewarded with an increase in year-over-year revenue at Intel. Revenue was $43.62 billion last fiscal year, compared to $35.13 billion in the previous year. The bottom line has rising earnings year-over-year of $11.46 billion last fiscal year, compared to $4.37 billion in the previous year.

Intel's big fat 3.3% yield, combined with earnings beats in the last four quarters, makes Intel a winner even if this quarter is soft.

TSM Chart TSM data by YCharts

Taiwan Semiconductor (TSM)

Who They Are: TSM is the world's largest dedicated integrated-circuit foundry and trades an average of 12.6 million shares per day with a marketcap of $68.2 billion.
52-Week High: $16.15
52-Week Low: $10.94
Book Value: $4.26
Price To Book: 3.04

TSM reports on July 19. Wall Street is looking for 27 cents a share, an improvement of 3 cents (11.1%) from 24 cents in second quarter last year.

Shares have appreciated 5.7% in the last year, and the average analyst target price for TSM is $15.70. However, in the last month the stock has fallen 3% and is now below the widely watched 200-day moving average.

The trailing 12-month P/E is 15.3, the mean fiscal-year estimated P/E ratio is 12.91, based on earnings of $1.02 a share this year. Investors are receiving 40 cents in dividends for a yield of 3.06%.

Year-over-year revenue increased to $13.32 billion last fiscal year, compared to $9.22 billion in the previous year. The bottom line has rising year-over-year earnings of $5.15 billion last fiscal year, compared to $2.80 billion in the previous year.

TSM has two beats, one miss and one quarter of in-line earnings during the previous four quarters. Keep a close eye on Intel for better color, but don't expect TSM to hit it out of the park this time.

NOK Chart NOK data by YCharts

Nokia (ADR) (NOK)

Who They Are: Nokia trades an average of 36.7 million shares per day with a market cap of $7.1 billion.
52-Week High: $7.38
52-Week Low: $1.77
Book Value: $3.56

Nokia is expected to report weak second-quarter earnings before the market opens on July 19. Wall Street is expecting a loss of 11 cents a share, a decline of 20 cents from 9 cents during the same period last year.

Analyst opinion is mixed. Right now, NOK has 2 buy recommendation out of 24 analysts covering the company, 16 holds, and 6 sells. Shareholders have not been rewarded for their patience; shares have fallen 66% in the last year, and the average analyst target price for NOK is $2.82.

The trailing 12-month P/E is 19 and the mean fiscal year estimate P/E is, based on a loss of 30 cents per share this year. Investors are receiving 18 cents in dividends for a yield of 9.31%. If you own Nokia for the dividend, run, don't walk away. The dividend was cut in January and another cut is all but certain.

In the last month, the stock has fallen 31.9%. In a nutshell, Nokia is circling the drain. The company is on life support, and brain scans indicate very little activity. Microsoft can pull the plug on them at any point and, with other smartphone makers stepping up to produce phones, Microsoft just might pull the plug soon.

Revenue year-over-year increased to $58.09 billion last fiscal year, compared to $57.62 billion in the previous year. The bottom line has rising earnings year-over-year of $1.78 billion last fiscal year, compared to $362.70 million in the previous year.

At the time of publication, the author held no positions in any stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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