Earnings Ahead from Dell, Cisco and Techs' Performance Update

NEW YORK ( TheStreet) -- Sandwiched between all the earnings releases from retailers this week are quarterly results from three old name tech stocks that are well below their 1999/2000 bubble highs.

The recent decline in technology shares has been led by weaker than expected quarterly results from other brand name technology companies. One of these companies was not publicly traded during the tech bubble, and three have traded to new all time highs in 2012, well above their bubble peaks.

Weakness in the Computer & Technology sector has that sector trading at fair value according to www.ValuEngine.com.

Here are my buy-and-trade profiles for the technology companies reporting earnings this week:

Cisco Systems ( CSCO) ($16.85): Reports earnings after the close today, and is expected to earn 41 cents per share. The stock has a buy rating, is 25.7% undervalued with a forward price-to-earnings ratio of 9.5. The stock is below its 200-day simple moving average at $18.42. The weekly chart is negative with the five-week modified moving average at $17.66 and the 200-week SMA at $19.80. My weekly value level is $16.42 with my annual pivot at $17.43 and annual risky level at $29.93.

Dell ( DELL) ($9.35): Reports earnings after the close on Thursday, and they are expected to earn 40 cents per share. The stock has a buy rating, is 42.8% undervalued with a forward P/E of just 5.5. The stock is well below its 200-day SMA at $13.42. The weekly chart profile is negative but extremely oversold with the five-week MMA at $9.70 and the 200-week SMA at $13.81. My weekly value level is $8.35 with a quarterly risky level at $14.21.

Applied Materials ( AMAT) ($10.63): Reports earnings after the close on Thursday, and they are expected to earn three cents per share. The stock has a hold rating, is 27.7% undervalued with a forward P/E of 13.9. The stock is well below its 200-day SMA at $11.52. The weekly chart profile is negative with the five-week MMA at $10.92 and the 200-week SMA at $12.31. My weekly value level is $9.80 with a monthly pivot at $10.23 and quarterly risky level at $12.76.

Here are updated profiles and buy-and-trade strategies for tech stocks that got hit following their earnings reports in October.

On Oct. 18 I wrote Trade the Volatility After Earnings Reports and in this story I profiled:

IBM ( IBM) ($189.25 vs. $200.63 on Oct. 18): Still has a buy rating, is 10.7% undervalued and has a forward P/E of 11.6. The stock is well above its 1999/2000 bubble high, but well below its 200-day SMA at $198.49 with the July 12 low at $181.85. The weekly chart is negative with the five-week MMA at $195.58 with the 200-week SMA at $151.80. My semiannual value level is $178.43 with a weekly pivot at $191.23 and monthly risky level at $201.39.

Intel ( INTC) ($20.76 vs. $21.79 on Oct. 18): Still has a buy rating, is 12.5% undervalued and has a forward P/E of 11.2. The stock is well below its 1999/2000 bubble high, set a new 2012 low yesterday and is well below its 200-day SMA at 25.67. The weekly chart is negative but oversold with the five-week MMA at $21.98 and 200-week SMA at $21.32. My weekly value level is $20.37 with a semiannual pivot at $21.14 and monthly risky level at $23.22.

On Oct. 24 I wrote Missed Corporate Revenue Signals QE Fatigue and in this story I profiled:

Google ( GOOG) ($665.90 vs. $680.35 on Oct. 24) - has been downgraded to hold from buy, is 6.1% undervalued and has a forward P/E ratio of 18.1. Google did not become a publicly-traded company until August 2004. The stock is above its 200-day SMA at $636.97. The weekly chart profile is negative with the five-week MMA at $687.38 and the 200-week SMA at $545.50. My semiannual value level lags at $518.15 with a monthly pivot at $679.57 and weekly and quarterly risky levels at $706.28 and $713.85.

On Nov. 6 I wrote Take Advantage of Earnings Volatility and in this story I profiled:

Amazon.com ( AMZN) ($226.47 vs. $234.33 on Nov. 6): Still has a buy rating, is 14.5% overvalued and has a forward P/E of 132.5. The stock is above its 1999/2000 bubble high and is above its 200-day SMA at $219.13. The weekly chart profile is negative with the five-week MMA at $236.93 with the 200-week SMA at $159.86. My weekly value level is $222.27 with a semiannual risky level at $236.23.

Apple ( AAPL) ($542.83 vs. $584.62 on Nov. 6): Still has a buy rating, is 13.2% undervalued and has a forward P/E of 10.3. The stock is way above its 1999/2000 bubble high, but is below its 200-day SMA at $594.16. The weekly chart profile is negative with the five-week MMA at $595.88 with the 200-week SMA at $332.67. My weekly value level is $538.56 with my quarterly risky level at $674.21.

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

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.

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