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11 IT Stock Plays That No Longer Make Sense

Slow sales and squeezed margins are strong reasons to sell

   

computer pile no 630 150x150 11 IT Stock Plays That No Longer Make SenseInformation technology is critical to all sectors of the economy, whether businesses area in retail or healthcare or energy. We live in a digital age where computers are crucial to businesses of all kinds. But that great dependency on information technology means that corporations are very selective in their products because IT can make or break the balance sheet sometimes.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, 11 IT stocks look ready to sell.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

Altera (NASDAQ:ALTR) is a global semiconductor company. In the last year, ALTR stock has dropped 27%, compared to the Dow Jones, which is up 3% in the same time. Altera stock gets an “F” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth, a “D” grade for earnings momentum, a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “D” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of ALTR stock.

Applied Materials (NASDAQ:AMAT) is involved with semiconductor, flat panel display, solar photovoltaic and related industries. In the past 12 months, AMAT stock has dipped 24%. Applied Materials stock gets an “F” grade for sales growth, an “F” grade for earnings growth and an “F” grade for earnings momentum. For more information, view my complete analysis of AMAT stock.

Corning  (NYSE:GLW) operates in the following business segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials and Life Sciences. Corning is down 31% since last May.GLW stock gets a “D” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth and a “D” grade for earnings momentum. For more information, view my complete analysis of GLW stock.

Ericsson (NASDAQ:ERIC) is a Swedish communications technology company that has dropped 34% since last May. Ericsson stock gets a “D” grade for sales growth and an “F” grade for earnings growth. For more information, view my complete analysis of ERIC stock.

Hewlett-Packard (NYSE:HPQ) is best known for the hardware and services it provides consumers and businesses. Hewlett-Packard stock has dipped 39% in the last year. HPQ stock gets an “F” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth and a “D” grade for earnings momentum. For more information, view my complete analysis of HPQ stock.

Juniper Networks (NYSE:JNPR) develops products and services that provide its customers with network infrastructure. Since last May, JNPR stock has dropped 44%. Juniper stock gets a “D” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth, a “D” grade for earnings momentum, a “D” grade for the magnitude in which earnings projections have increased over the past months and a “D” grade for return on equity. For more information, view my complete analysis of JNPR stock.

Kyocera  (NYSE:KYO) develops products for its customer in the information and communications market and environment and energy market. A loss of 12% in the last 12 months has left shareholders displeased. Kyocera stock gets a “D” grade for earnings momentum, a “D” grade for the magnitude in which earnings projections have increased over the past months and a “D” grade for return on equit. For more information, view my complete analysis of KYO stock.

NetApp  (NASDAQ:NTAP) is a provider of storage and data management solutions that is down 26% since this time last year. NetApp stock gets a “D” grade for operating margin growth, a “D” grade for earnings growth and a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street. For more information, view my complete analysis of NTAP stock.

Nokia (NYSE:NOK) is best known for its line of mobile devices. NOK stock has dropped 61% in the last 52 weeks. Nokia stock gets an “F” grade for sales growth, an “F” grade for operating margin growth, an “F” grade for earnings growth, an “F” grade for earnings momentum, an “F” grade for the magnitude in which earnings projections have increased over the past months, an “F” grade for cash flow and an “F” grade for return on equity. For more information, view my complete analysis of NOK stock.

Texas Instruments (NASDAQ:TXN) is a designer and manufacturer of semiconductors. TXN is down 10% since last May. Texas Instruments stock gets a “D” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth and a “D” grade for earnings momentum. For more information, view my complete analysis of TXN stock.

Wipro (NYSE:WIT) provides its customers with outsourced research and development, infrastructure outsourcing, business process outsourcing and business consulting services. Wipro stock rounds out the list with a drop of 30% in the past 12 months. WIT stock gets an “F” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth and a “D” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of WIT stock.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

 


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/11-information-technology-stocks-to-sell-altr-amat-glw-eric-hpq/.

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