|Back to main|
1/19/2011 12:01:37 AM
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 anytime soon.
Here are 6 big-name tech blue chips investors should continue to avoid despite growth across the sector in general:Cisco Systems Inc. ( CSCO )
Operating in the communications and information technology industry, Cisco Systems Inc. (NASDAQ: CSCO ) 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 portfolio.Research In Motion Ltd. ( RIMM )
Famous for making the Blackberry line of smartphones, Research in Motion Ltd. (NASDAQ: RIMM ) 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 ( AAPL ) and Google ( GOOG ) 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 $76.95.Hewlett-Packard Co. ( HPQ )
Known for its technology products, software and technology services Hewlett-Packard Co. (NYSE: HPQ ) 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 Apple Inc. (NASDAQ: AAPL ) and Dell (NASDAQ: DELL ). 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, Dell Inc. (NASDAQ: DELL ) 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 Yahoo! Inc. (NASDAQ: YHOO ) 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)
Tech giant Microsoft (NASDAQ: 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.