The market seems to be going strong after a breakout September, with the Dow up over +10% since August 31 and the tech-heavy NASDAQ up +13%. But a rising tide does not lift all boats, and a number of technology stocks continue to fall behind – and are in danger of further declines as we enter another earnings season.
I currently have 9 big name tech blue chips on my “dogs with fleas” list as stocks to avoid this fall. As Q3 numbers roll out for these technology giants, it could be bad news for shareholders.
Here are 9 famous tech companies to consider selling now:
Nokia Corp. ADR (NYSE: NOK) has watched its stock slide -29.7% since the start of April. The cell phone provider has also missed earnings estimates the past two quarters. In such a competitive industry, Nokia is having a hard time challenging Apple (NASDAQ: AAPL) and Motorola (NYSE: MOT).
Yahoo! Inc. (NASDAQ: YHOO) is not far removed from its 52-week low of $12.94, with a stock price of $14.44. Since January, this online media company’s stock has dropped nearly -14%, compared to modest gains by the broader markets, and appears to be losing the battle against Google Inc. (NASDAQ: GOOG) big-time.
Activision Blizzard (NASDAQ: ATVI) has seen its stock price decline -11.7% over the past 12 months. This tech stock has had an up-and-down 2010, and has seen its earnings dwindle from 49 cents last December to just 6 cents in June. A rough video game market persists, and this studio could post weak numbers again.
Hewlett-Packard Co. (NYSE: HPQ) stock has slid -20.2% year-to-date. Currently trading at $41.13, HPQ is far from its 52-week high of $54.75. Over the past four quarters, Hewlett-Packard has outperformed earning estimates by just six cents combined. The company will need more juice to move the needle this time, and likely won’t get it.
Adobe Systems Inc. (NASDAQ: ADBE) is a diversified software company that has experienced a -25.6% drop in stock in 2010. It’s been a while since ADBE posted impressive numbers, as the stock is down -6.2% over the past five years. Adobe is trading at $27.34, just $2 above its 52-week low.
Dell Inc. (NASDAQ: DELL) is another tech stock worth dumping. Since last October, Dell has watched its stock fall -13.5% compared to small gains by the broader markets. Since late April, DELL stock is down -21.7% — and an earnings miss could send this stock down even farther.
Cisco Systems Inc. (NASDAQ: CSCO) designs, manufactures and sells IP-based networking. Over the past 12 months, CSCO stock has declined -6%. At $22.60, Cisco is well below its 52-week high of $27.74.
Research In Motion (NASDAQ: RIMM) has posted dreadful numbers, despite being the designer and manufacturer of the popular Blackberry smartphone. In the last year, this tech stock’s price has fallen -28.7%. Since late March, RIMM stock is down -33.1% and continued erosion of its marketshare could hurt earnings again.
Microsoft Corp. (NASDAQ: MSFT) may have a market cap of $213 billion, but its stock should be sold nonetheless. Since January, MSFT stock is down -19.2%. Trading at $24.62, this tech stock is just above its yearly low of $22.73.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.
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