There's little doubt that technology stocks have been fueling
the market's success in the past year or two. Since early 2009, the
Nasdaq has doubled since its lows while the other indexes are up a
little better than half of that.
But it's worth noting that some of the biggest names in tech
have been left behind - both in the long-term and in the recent
surge we've seen in the technology sector. And unfortunately, some
of these big time technology stocks are showing no sign of hope
Here are 6 big-name tech blue chips investors should continue to
avoid despite growth across the sector in general:
Cisco Systems Inc. (
Operating in the communications and information technology
Cisco Systems Inc.
) has had a forgettable year, and leads this week's list of stocks
to sell. Over the past 12 months, CSCO stock has dropped -13%,
compared to gains of +20% and +11% for the NASDAQ and Dow Jones,
respectively. More recently, CSCO has lost -9% in the last three
months. Another bad sign for the company is that analysts are
projecting EPS of 35 cents this quarter after CSCO posted EPS of 40
cents this quarter last year. Sell this stock as it approaches its
52-week low of $19.00 before it does any more damage to your
Research In Motion Ltd. (
Famous for making the Blackberry line of smartphones,
Research in Motion Ltd.
) is another mega-cap stock worth selling this week. Over the past
year, RIMM has decreased -2%, compared to gains by the broader
markets. With the increasing competition in the smartphone market
and the success of competitors like Apple (
) and Google (
) Android, investors should be wary of buying into RIMM. That being
said, RIMM is an overweight stock with a 52-week range of $42.53 to
Hewlett-Packard Co. (
Known for its technology products, software and technology
) has also had a dismal 12 months. During that time, HPQ stock has
lost -12%. Hewlett-Packard is another company that is being
strained by competition, specifically from
). If you own HPQ stock, consider selling it now before it does any
more damage to your portfolio. The tech stock has a 52-week range
of $37.32 to $54.75.
Dell Inc. (DELL)
Like the company before it,
) is known primarily for its range of technology products. Similar
to HPQ, DELL has lost -2% over the past 12 months. After a small
rally in September, DELL has lost -3% over the past three months.
Currently, DELL isn't trading much higher than its 52-week low of
$11.34. DELL is a tech stock worth selling now, before the stock
loses any more value.
Yahoo! Inc. (YHOO)
Next on the list of mega-cap tech stocks to sell is
) which has also had a lackluster year. Since this time last
year, YHOO stock has remained even. This of course coming in a time
when the broader markets have posted gains over +10%. While some
stocks on this list have certainly performed worse than Yahoo!, the
tech-company's lack of growth remains alarming. Sell YHOO stock
with a 52-week range of $12.94 to $19.12.
Microsoft Corp. (MSFT)
) rounds out the list of top mega-cap tech stocks to sell now. Over
the past 12 months, Bill Gate's company has slipped -8%, compared
to gains by the broader markets. Additionally, experts are
projecting earnings of 68 cents this quarter, after MSFT reported
an EPS of 74 cents this time last year. Microsoft may be a
household name, but that doesn't mean its stock should be in every
investor's portfolio. With a 52-week range of $22.73 to $31.58,
sell MSFT stock now.
As of this writing, Louis Navellier did not own a position in
any of the stocks named here.