Tag Archives: INTC

Cisco Systems Remains Top-Performing Dow Stock

Cisco Systems Inc. (NASDAQ: CSCO) continues to be the best-performing Dow Jones industrial average stock year to date, with a 1.4% share price gain last week. For the year to date, Cisco’s stock is up 19.9%.

The second-best performer among the Dow 30 so far this year is Intel Corp. (NASDAQ: INTC), which is up about 18.4%. That is followed by Boeing Co. (NYSE: BA), up 16.1%, Visa Inc. (NYSE: V), up 15.6%, and Microsoft Corp. (NASDAQ: MSFT), up 14.2%. Of the 30 stocks comprising the Dow index, only 13 have posted year-to-date gains as of Friday’s close.

The Dow added 568.66 points over the course of the last week to close at 24,24,831.17, up 2.3% for the week. For the year to date, the tech sector has added 11%, the best among the 10 market sectors.

Cisco closed its fiscal third quarter at the end of April and is scheduled to report results after markets close next Thursday. Analysts are looking for earnings per share (EPS) of $0.65 and revenues of $12.44 billion. That would be a 12% year-over-year boost to EPS and more than 4% to revenues.

After a mostly quiet week, Cisco announced in a Wednesday blog post that it had “temporarily paused” its advertising on YouTube “due to instances where third-party partners did not meet our guidelines.” The company later took down the post and replaced it with a more generic statement from Chief Marketing Officer Karen Walker: “We are working closely with all of our media partners to ensure that Ciscos online advertising meets our stringent standards.”

The two posts are the result of a CNN investigation that found the ads from Cisco and other major brands ran on YouTube channels promoting white nationalism, Nazis, pedophilia, conspiracy theories and North Korean propaganda.

Cisco’s shares closed down about 0.8% Friday, at $45.93 in a 52-week range of $30.36 to $46.37. The consensus 12-month price target on the stock is $49.71, up nine cents from the previous week, and the forward price-earnings ratio is 16.06.

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Procter & Gamble Clings to Ranking as Dow’s Worst Performing Stock

Cisco Systems Remains Top-Performing Dow Stock

Cisco Systems Inc. (NASDAQ: CSCO) continues to be the best-performing Dow Jones industrial average stock year to date, with a 1.4% share price gain last week. For the year to date, Cisco’s stock is up 19.9%.

The second-best performer among the Dow 30 so far this year is Intel Corp. (NASDAQ: INTC), which is up about 18.4%. That is followed by Boeing Co. (NYSE: BA), up 16.1%, Visa Inc. (NYSE: V), up 15.6%, and Microsoft Corp. (NASDAQ: MSFT), up 14.2%. Of the 30 stocks comprising the Dow index, only 13 have posted year-to-date gains as of Friday’s close.

The Dow added 568.66 points over the course of the last week to close at 24,24,831.17, up 2.3% for the week. For the year to date, the tech sector has added 11%, the best among the 10 market sectors.

Cisco closed its fiscal third quarter at the end of April and is scheduled to report results after markets close next Thursday. Analysts are looking for earnings per share (EPS) of $0.65 and revenues of $12.44 billion. That would be a 12% year-over-year boost to EPS and more than 4% to revenues.

After a mostly quiet week, Cisco announced in a Wednesday blog post that it had “temporarily paused” its advertising on YouTube “due to instances where third-party partners did not meet our guidelines.” The company later took down the post and replaced it with a more generic statement from Chief Marketing Officer Karen Walker: “We are working closely with all of our media partners to ensure that Ciscos online advertising meets our stringent standards.”

The two posts are the result of a CNN investigation that found the ads from Cisco and other major brands ran on YouTube channels promoting white nationalism, Nazis, pedophilia, conspiracy theories and North Korean propaganda.

Cisco’s shares closed down about 0.8% Friday, at $45.93 in a 52-week range of $30.36 to $46.37. The consensus 12-month price target on the stock is $49.71, up nine cents from the previous week, and the forward price-earnings ratio is 16.06.

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Procter & Gamble Clings to Ranking as Dow’s Worst Performing Stock

Intel Corp.'s Contract Chip Manufacturing Business Will Fail

For years now, chip giantIntel(NASDAQ:INTC) has talked about how it hopes to compete in the contract chip manufacturing market dominated byTaiwan Semiconductor Manufacturing Company(NYSE:TSM) andSamsung(NASDAQOTH:SSNLF).

Even as recently as last fall, Intel hosted a Technology and Manufacturing Day in China and spent a great deal of time laying out the opportunity that it saw in becoming a contract chip manufacturer for mobile and network infrastructure applications.

Intel executives at the company's Technology and Manufacturing Day.

Image source: Intel.

Although the company says that the total addressable market for contract chip manufacturing services was around $53 billion in 2016, with so-called “leading edge” technologies — the subsegment of the market that Intel hopes to serve — comprising $23 billion of that, I believe that Intel’s efforts here will fail, and it won’t capture even 1% of that $23 billion served addressable market.

Here’s one simple reason why.

Unreliable technologyroad map

Companies like TSMC and Samsung deliver new manufacturing technologies like clockwork. They need to do so because their major customers, such as mobile processor makers, have to hit very tight schedules because smartphone cycles stay the same each year.

Apple(NASDAQ:AAPL), for example, launches new iPhones in September of each year, so any contract chip manufacturer that Apple uses to build its chips needs to have its latest technologies ready for mass production by around April or May of that same year. Any delay and Apple’s iPhone launch plans will be derailed, adversely impacting its business prospects.

While TSMC and Samsung consistently execute in bringing new technologies to market each year, Intel has — over the last five years — failed to deliver new technologies into mass production on time.

Intel’s 14nm technology, originally slated to go into production by the end of 2013, didn’t begin production until mid-2014. Even worse, the company’s 10nm technology, which was originally scheduled to go into production by the end of 2015, still isn’t in production and won’t go into production until sometime in 2019 (Intel refuses to publicly commit to when in 2019 it expects to start production).

A four-year delay in a product would be nothing short of disastrous for any chip or systems company. Can you imagine if Apple saw a four-year delay in its latest A-series processor?

Until Intel can show multiple generations of consistent technology execution — something that’d likely only prove out over the next six to 10 years — no company run by halfway competent management would bet its businesses on Intel’s chip manufacturing capabilities. Such a move would be, at best, reckless, and at worst career suicide for the decision-makers who chose to go with Intel.

Intel’s best course of action

At this point, Intel’s best course of action would be to completely shut down its contract chip manufacturing efforts. This means the company should no longer invest any resources in trying to acquire new companies as customers (this would likely be an exercise in futility, anyway) and it should no longer allow the needs of potential third-party customers influence its technology development.

Any engineering resources that it had allocated to this effort should be reassigned to work either on Intel’s internal chip manufacturing technology development or its internal product development. Any marketing resources should be similarly redirected to support the company’s large portfolio of in-house-designed products.

3 Vital Earnings Reports to Watch This Week

A few weeks back, Wall Street was talking about how a robust earnings season was going to save the market. The theory was that really strong quarterly earnings would offset the macro headwinds which have weighed on stocks, and that the market would head higher as a result.

Earnings season is now here. The numbers have been very good, as expected. First-quarter earnings growth has run at 24% thus far, the best growth rate since the third quarter of 2010. Nearly 80% of companies are reporting earnings above Street expectations, the highest “beat rate” on record (dating back to 2008).

And yet, despite those strong numbers, stocks haven’t made much of a move. Over the past month, the S&P 500 is up just 2%. While that is positive, it isn’t the type of big rebound a lot of investors were looking for.

Nonetheless, earnings are good and stocks are heading higher. Thus, this week will be critical to see if the last leg of the earnings season can be as good as the first few legs.

With that in mind, here are three earnings reports to watch this week.

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Earnings Reports to Watch: Disney (DIS) Earnings Reports to Watch: Disney (DIS)Source: Robert Ziegler via Flickr (Modified)

Entertainment giant Walt Disney Co (NYSE:DIS) is due to report earnings after the bell on Tuesday. This could be one of the more highly anticipated earnings reports from Disney in recent memory for several reasons.

First, this is the first time we will hear from management about how the company’s new ESPN Plus product is faring in the streaming market. Remember, ESPN Plus is essentially part one of this company’s major pivot into streaming, which is supposed to help offset cord-cutting headwinds. If ESPN Plus is doing well, that bodes well for this company’s streaming plans. If it’s doing poorly, then investors could lose faith.

Second, this is also the first time we will hear numbers against the backdrop of maybe the company’s most promising movie line-up ever. “Avengers: Infinity War” is breaking box office records left and right — some which were just recently set by the studio’s movie “Black Panther” — and the high consumer and critic reviews have only increased anticipation for next year’s second Infinity War movie. There is also a new Star Wars movie set to release this month, and another one set to release later this year.

It will be interesting to see management’s commentary surrounding this powerful movie line-up. In particular, management is prepping a Disney streaming service for launch in late 2019. This movie line-up will presumably be featured on that streaming service, so commentary surrounding these movies is especially important in this quarter’s call.

Third, pay-TV providers continue to throw up duds in terms of subscriber losses. Disney’s numbers will likely reflect this. But on the flip-side, NBA playoff TV ratings (which are mostly aired on Disney-owned EPSN and ABC) are at multiyear highs. It will be interesting to see if ESPN starts to separate itself from the pack in the cord-cutting crisis.

For these reasons, DIS is a stock to watch this week.

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Earnings Reports to Watch: Roku (ROKU) Earnings Reports to Watch: Roku (ROKU)Source: Roku

Shares of streaming platform maker Roku Inc (NASDAQ:ROKU) are almost guaranteed to have some big swings after the company reports its quarterly earnings after the bell on Wednesday.

ROKU was this red-hot IPO that took off like a rocket ship after the company reported its first earnings report as a public company. The numbers surpassed expectations, and everyone hopped on the bandwagon, thinking that this stock was destined to follow in the streaming footsteps of Netflix, Inc. (NASDAQ:NFLX).

ROKU stock went from $20 to nearly $60.

But that all came crumbling apart after the company gave a weak first-quarter guide in its next earnings report. The stock dropped — big time. It now sits in the lower $30’s.

This coming report is huge for the company’s long-term growth narrative. There are really two outcomes from this report.

One, the numbers are outstanding. Bulls buy back into the theory that this is a company with Netflix-like growth potential, and the stock takes off like a rocket ship.

Two, the numbers are just good. Bears point out that the numbers are much weaker than the numbers Netflix reported, and thus, the Netflix parallel gets thrown out the window. ROKU stock drops like a rock.

I’m not sure which of these outcomes is more likely at this point. Roku is a content-neutral provider of streaming service capabilities, and that does seem to have long-term value in the steaming market. But competition is fierce, and Roku has the least amount of resources when it comes to players in this space.

Thus, this is a high-risk, high-reward earnings report that could fundamentally change the company’s long-term growth narrative.

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Earnings Reports to Watch: Nvidia (NVDA) Earnings Reports to Watch: Nvidia (NVDA)Source: Shutterstock

Secular growth technology giant Nvidia Corporation (NASDAQ:NVDA) is set to report earnings after the bell on Thursday. Considering how big the company is ($150 billion market cap) and how influential the markets it’s exposed to are (data-centers, autonomous driving, artificial driving, and cryptocurrencies, so on and so forth), NVDA’s numbers could have a broad impact on numerous stocks.

Fortunately, it looks like the numbers will be quite good.

A few weeks back, Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NASDAQ:AMD) both reported really good quarterly numbers. The theme across both of the reports was still-robust demand from cloud data-centers. Meanwhile, it appears that these companies are largely shielded from erosion in the cryptocurrency mining tailwind.

That is good news for NVDA.

Nvidia is the leader in the cloud data-center space. If AMD and INTC reported good numbers there, chances are that NVDA will report great numbers. Also, bears have been worried about the lack of a cryptocurrency boost. But AMD, which was seen as having a bigger crypto reliance, reported great numbers. Thus, Nvidia likely shook off crypto headwinds this past quarter, too.

NVDA stock, however, has already rallied more than 15% since AMD and INTC reported. Clearly, investors are buying in anticipation of good numbers.

Therefore, it will be interesting to see how the stock reacts to good numbers. If it goes up, then that is a good sign for valuations in the hyper-growth sector. If it does down, then that is a bad sign for valuations in the hyper-growth sector.

It is that simple. As such, this will be a report that investors will want to watch closely.

As of this writing, Luke Lango was long DIS, IN

Cisco Still Holds Rank as Top Performing Dow Stock

Cisco Systems Inc. (NASDAQ: CSCO) held on to its ranking as the best-performing Dow Jones industrial stock of the year to date with a 1.3% share price gain last week. For the year to date, Cisco’s stock is up 18.28%

The second-best performer among the Dow 30 so far this year is Intel Corp. (NASDAQ: INTC), which is up about 14.3%. That is followed by Boeing Co. (NYSE: BA), up 13.4%, Nike Inc. (NYSE: NKE), up 12.4%, and Microsoft Corp. (NASDAQ: MSFT), up 11.3%. Of the 30 stocks comprising the Dow Jones industrial average index, only 11 have posted year-to-date gains as of Friday’s close.

The Dow dropped less than 50 points over the course of the last week to close at 24,262.51, down 0.2% for the week. For the year to date, the tech sector has added 7.3%%, the best among the 10 market sectors.

Cisco closes its third fiscal quarter at the end of April and is scheduled to report results on May 16. Analysts are looking for earnings per share (EPS) of $0.65 and revenues of $12.43 billion. That would be a 12% year-over-year boost to EPS and more than 4% to revenues.

Last Tuesday, Cisco sold its Service Provider Video Software Solutions business to private equity firm Permira for a reported $1 billion. Six years ago, Cisco paid $5 billion to Permira to acquire the U.K.-based business. Cisco said it will retain the video and media technology related to its core businesses of networking, multicloud, security, data and collaboration.

Late Wednesday Cisco revealed that it had sold 605,000 VMware Inc. (NYSE: VMW) shares during the first quarter of 2018. Forbes calculated the value of the sale at around $73 million based on VMware’s closing price of $121.27 at the end of March. Cisco still owns about 1.93 million VMware shares. What the sale tells us about the much-discussed potential acquisition of VMware by Dell is probably not much.

Cisco’s shares closed up about 1.9% Friday, at $45.30 in a 52-week trading range of $30.36 to $46.16. The consensus 12-month price target on the stock is $49.62, unchanged from the previous week, and the forward price-to-earnings ratio is 15.84.

ALSO READ: Dow’s Worst Performing Stock Still Procter & Gamble

Why AMD Will Not Fall Below $11

As a company in a turnaround situation, Advanced Micro Devices (AMD) would traditionally get pulled lower as markets teeter with a downward bias. At the time of writing, the S&P 500 and the Dow Jones are trading lower by 0.5 1 percent daily. The volatility gives bears, who collectively raised their bearish bet against the stock, an excuse to find doubt in AMDs recovery. Unfortunately, the chip company reported too good a quarter and raised its guidance, lessening any doubt that the company will achieve higher sales and profits in 2018 and beyond.

Cryptocurrency a Non-Issue

AMD is well aware that its loyal fans of PC gamers will give Vega a chance over Nvidias (NVDA) GTX graphics cards. The cryptocurrency miners, specifically for Ethereum but tracked through the ETF (OTCQX:GBTC), are more than willing to pay twice or three times over MSRP for Vega GPUs. Since AMD does not benefit from the higher prices, and crypto miners will slow GPU purchases as mining becomes less profitable, the company looks out for its community of enthusiasts. On the conference call, AMD said:

Our first priority when we look at (the) allocation of graphics cards is to gamers. And so that’s through OEMs, that’s through system integrators, that’s also working with key e-tailers to make sure that they are prioritizing the gamers segment and we’re going to continue to do that. And so, that’s one piece that we know well. We also work directly with the commercial miners, and so, we see kind of what their forecasts are and they work with us and so that we have good visibility on.

Source: SA Transcript

AMD Vega
Crypto miners account for only 10 percent of GPU revenue. While they have disrupted pricing for GPUs, memory, and other PC parts, AMD will continue supporting their needs. Its just that it will put a higher priority to the gamer market. Last month, prices of GPUs started falling by around 25 percent. ASICs designed to mine Ethereum put a negative pressure on GPU prices. So as mining using Vega cards fall, the market could get a potential flood of AMD and Nvidia GPUs. Since the resale value of such cards is lower and the demand less desirable, it should not compete with sales of AMDs GPUs at the retail stores.

Ryzen Momentum Accelerating

ASPs for CPUs rose during the quarter and will go up again throughout the year. Ryzen accounted for 60 percent of client processor revenue, up around 20 percent sequentially. More desktop and notebooks are getting Ryzen chips, giving ASPs a lift. The launch of second-generation Ryzen desktops, based on the 12 nanometer Zen+ architecture, should not only keep ASPs from falling but may even give a boost. With more retailers like Dell and HP Inc. (HPQ) offering Ryzen-powered computers, AMD may need to raise its revenue forecast later this year.


In the current second quarter, Ryzen mobile launch will not add to results in the near term but will give profit margin a lift later this year. Already, Dell has 2-in-1 notebooks, while Acer, HP, and Lenovo all experienced strong sales last quarter. Investors may confidently forecast higher mobile revenue and profits in Q3 and Q4 this year, above managements forecast.

AMD is not stopping at Zen+. It is building on the 7 nm capability, in-line with the product roadmap for Ryzen:

I think as we look forward, and I think this is important, we believe that the 7-nanometer capability of the foundry ecosystem is very good, and that puts us in a good competitive spot from a manufacturing standpoint. And then, on the design side, obviously, we have things that we’re planning. And so, I see the competitive environment as one that is as good and we’re going to work very hard to make sure that it gets better over time. Obviously, we take the competition very seriously.

Source: SA Transcript

Conversely, Intel is delaying its 10 nm Cannon Lake because it can. To compete effectively against AMD’s Ryzen, Intel need only cut prices for its chips.

Deep-Learning Platform

Just as Nvidia (NVDA) stock trades at P/Es in the 40 50 range thanks to its deep-learning and super-computing offering, especially in the ADAS (self-driving) market, the same may happen for AMD stock. Still, investors must have patience before AMD trades at Nvidia-like multiples. Radeon Instinct 125 is getting validated and tested at this time. AMD just launched ROCm, or Radeon Open Compute ecosystem, a platform for GPU-Enabled HPC and Ultrascale Computing.

Speaking of supercomputers, AMD announced a deal with Cray (CRAY) whereby Crays supercomputers will use EPYC chips.

ROCm is in the early innings and is something that offers power-hungry users an alternative to Nvidias offerings.

Semi-Custom Sales Fall

Investors should not be surprised that revenue from the embedded and semi-custom segment dropped in the first quarter. AMD did not collect any big royalty payments in the period. The console refresh cycle has yet to restart. Until Sony (SNE) and Microsoft (MSFT) ask for more powerful APUs, the Jaguar architecture is good enough for current-generation consoles.

Valuation and Takeaway

At $11 a share, AMD may trade above its peers from an EBITDA multiples comparison. The forward growth is under-stated in light of the pace of Ryzen and Vega sales the company demonstrated in its first quarter. Sure, Micron (NASDAQ:MU) and Lam Research (NASDAQ:LRCX) are valued at lower forward P/Es, but if its growth is slowing and AMD’s is accelerating, the disparity in the valuation is justified.

AMD
Source: finbox.io

And while Wall Street has an average price target of $13.84 on AMD stock, conservative investors may choose Qualcomm (QCOM), Micron Technology, Nvidia, and Intel (NASDAQ:INTC) as better comparisons. In that scenario, AMDs relative premium is justified because of the 40 percent revenue growth in the last quarter. Even after assuming revenue growth slows to the single digits within the next 10 years, AMD stock has a fair value in the teens.

Please [+]Follow me for value stocks on sale. Click on the big “follow” button beside my my avatar.

DIYers (Do-it Yourselfers) benefited from the AMD trading strategy ahead of the earnings report. This DIY idea originates from the DIY Value Investing marketplace service.

Disclosure: I am/we are long AMD.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

10 Stocks To Watch For April 27, 2018

Some of the stocks that may grab investor focus today are:

Wall Street expects Phillips 66 (NYSE: PSX) to report quarterly earnings at $0.89 per share on revenue of $29.46 billion before the opening bell. Phillips 66 shares gained 0.43 percent to $113.00 in after-hours trading.
Expedia Group Inc (NASDAQ: EXPE) reported stronger-than-expected earnings for its first quarter on Thursday. Expedia shares climbed 10.95 percent to $118.00 in the after-hours trading session.
Intel Corporation (NASDAQ: INTC) reported better-than-expected results for its first quarter and also raised its FY18 sales outlook. Intel shares surged 5.52 percent to $55.98 in the after-hours trading session.
Analysts are expecting Exxon Mobil Corporation (NYSE: XOM) to have earned $1.13 per share on revenue of $63.60 billion in the latest quarter. Exxon Mobil will release earnings before the markets open. Exxon Mobil shares rose 0.67 percent to $81.40 in after-hours trading.
Amazon.com, Inc. (NASDAQ: AMZN) posted upbeat results for its first quarter. The company sees second quarter operating income of $1.1 billion – $1.9 billion and sales of $51 billion – $54 billion. Amazon shares gained 6.72 percent to $1,620.00 in the after-hours trading session.

Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

Before the markets open, Chevron Corporation (NYSE: CVX) is projected to report quarterly earnings at $1.49 per share on revenue of $40.70 billion. Chevron shares rose 1.01 percent to $125.48 in after-hours trading.
LogMeIn Inc (NASDAQ: LOGM) reported upbeat earnings for its first quarter, but issued weak second quarter and FY18 earning guidance. LogMeIn shares dropped 7.98 percent to $110.05 in the after-hours trading session.
Analysts expect Colgate-Palmolive Company (NYSE: CL) to report quarterly earnings at $0.73 per share on revenue of $4.02 billion before the opening bell. Colgate-Palmolive shares rose 0.39 percent to $66.85 in after-hours trading.
Starbucks Corporation (NASDAQ: SBUX) reported in-line earnings for its second quarter. The company also added 100 million shares to its buyback plan. Starbucks shares fell 2.16 percent to $58.10 in the after-hours trading session.
Microsoft Corporation (NASDAQ: MSFT) reported better-than-expected earnings for its third quarter on Thursday. Microsoft shares rose 2.37 percent to $96.49 in the after-hours trading session.

A Beat Can’t Keep Qualcomm Inc. Strongly Over $50

Despite handily beating earnings estimates, Qualcomm, Inc. (NASDAQ:QCOM) could not slay the bears stalking its stock.

Qualcomm stock Source: Karlis Dambrans via Flickr

The company said it earned $1.2 billion, 80 cents per share, on revenues of $5.2 billion for the quarter, easily beating a “whisper number” of 63 cents. But the shares rose just five cents in overnight trading and were due to open at $49.80 each, down almost 25% so far in 2018. It then waffled around the $50 point for most of the day.

The opening price is close to the company’s low of September 9, which came after a judge ruled that Apple Inc. (NASDAQ:AAPL) lawsuits against it could proceed.  The two companies have been at legal war since early 2017, with Apple protesting Qualcomm’s royalties for using its patents.

The conflict eventually brought in an unsolicited bid from Broadcom Inc. (NASDAQ:AVGO) which Qualcomm survived only after the Administration blocked it, fearing a leakage of technology to China.

Where Do We Go from Here?

Qualcomm has been fighting for its monopoly rights over cellphone tech for three years now. It beat back efforts to cut royalties from China, and eventually settled with Samsung Electronics (OTCMKTS:SSNLF), which complained the chips ran too hot.

The disputes take many forms, but they all amount to the same thing. Rival chipmakers want a piece of Qualcomm’s market, and Qualcomm is fighting them in court with patents that are necessary to produce the chips.

Since these disputes began in 2015, Qualcomm stock has bounced between about $50 per share and about $80 per share. The latest fall is based on analysts concerns Apple will switch to its own and Intel Corp. (NASDAQ:INTC) chips in the iPhone, that Samsung is moving to its own homegrown processors, and that China’s Huawei will power phones made there.

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Qualcomm’s own outlook is that China will come around, but that the dispute with Apple is unlikely to end soon, meaning years of royalties it claims Apple owes won’t be hitting its books. The company also could not say when its planned acquisition of NXP Semiconductors NV (NASDAQ:NXPI) might be completed. Chinese regulators have yet to approve it, and the deal may yet become a victim in the growing trade conflict between China and the U.S.

Could Mollenkopf Leave?

CEO Steve Mollenkopf, who took his present position in 2014 after it was rumored he might take the job at  Microsoft Corporation (NASDAQ:MSFT) that eventually went to Satya Nadella, has been taking heat for his hardline position, and predecessor Paul Jacobs left the board recently after reports emerged he was trying to take the company private along with Softbank Group Corp. (OTCMKTS:SFTBY).

Even if Mollenkopf were replaced, and the Apple dispute were settled, however, it would provide only a short-term fix for Qualcomm’s troubles.

As mobile phones have become the center of personal technology during this decade, what they contain and how they work has become an intense, global political issue, not just a business one.

It’s not about speeds and feeds anymore. It’s about control. It’s about control over the market, control over the price of the device, and control over the underlying technology on which the global economy rides.

Still, a Bargain?

In this environment, Qualcomm’s demands for its “intellectual property rights” are trumped by global politics. With its market cap of under $74 billion, it’s a minnow in a sea of sharks.

At the present price, however, it’s one of the world’s great bargains. It sells for less than four times annual revenue. The dividend rate of 62 cents per share, easily sustained by current earnings, represents a yield of almost 5%, and the possibility of a profitable buyout, or an end to the Apple dispute, makes it very tempting at its current price.

Dana Blankenhorn is a financial and technology journalist. He is the author of the historical mystery romance The Reluctant Detective Travels in Time, available now at the Amazon Kindle store. Write him at [email protected] or follow him on Twitter at @danablankenhorn. As of this writing he owne

Boeing, Caterpillar, Microsoft and More Dow Earnings Coming This Week

Although markets were somewhat shaky for the first big week of the new earnings reporting season, they ultimately closed up for the second week in a row. This is only a small step, but it has proven that solid fundamentals can stabilize this market.

Ten of the indexs 30 components are expected to share their results this week. The Dow Jones industrial index has been subject to incredible volatility since January, but as we mentioned before, this earnings season could stabilize the index.

24/7 Wall St. has put together a preview of the Dow Jones industrial average companies scheduled to report their quarterly results this week. Here, we have included the consensus earnings estimates from Thomson Reuters, as well as the stock price and trading history.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

3M Co. (NYSE: MMM) is set to report its most recent quarterly results on Tuesday. Analysts are looking for $5.57 in earnings per share (EPS) and $8.69 billion in revenue. Shares closed the week at $217.75, with a consensus price target of $237.92 and a 52-week trading range of $190.59 to $259.77.

International Business Machines Corp. (NYSE: IBM) is expected to report its first-quarter results on Tuesday. The analysts consensus forecast is EPS of $2.52 on $8.26 billion in revenue. Shares were changing hands at $156.71 as last week came to a close. The consensus price target is $170.75, and the stock has a 52-week range of $139.13 to $171.69.

Caterpillar Inc. (NYSE: CAT) will share its latest quarterly earnings on Tuesday. The consensus estimates call for $2.08 in EPS and $11.98 billion in revenue. Shares ended last week at $153.25, in a 52-week range of $93.81 to $173.24. The consensus analyst target is $178.26.

Coca-Cola Co. (NYSE: KO) is scheduled to share its quarterly report on Tuesday as well. The consensus estimates are $0.46 in EPS on $7.31 billion in revenue. Shares were last seen at $43.74. The stock has a 52-week range of $42.19 to $48.62, and the consensus price target is $50.03.

On Tuesday, Verizon Communications (NYSE: VZ) is expected to report its most recent quarterly results. The consensus analyst estimates are $1.71 in EPS and revenue of $9.05 billion. Shares of Verizon were at $47.90 on Fridays close. The consensus price target is $56.08, and the 52-week range is $42.80 to $54.77.

Boeing Co. (NYSE: BA) is expected to report its first-quarter results on Wednesday. The analysts consensus forecast is EPS of $2.56 on $22.09 billion in revenue. Shares were changing hands at $338.67 as last week came to a close. The consensus price target is $387.29, and the stock has a 52-week range of $175.47 to $371.60.

Visa Inc. (NYSE: V) will share its latest quarterly earnings on Wednesday. The consensus estimates call for $1.02 in EPS and $4.8 billion in revenue. Shares ended last week at $124.20, in a 52-week range of $90.98 to $126.88. The consensus analyst target is $140.09.

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Wall Street Analysts Bullish on Energy as Oil Surges to 3-Year Highs

Intel Corp. (NASDAQ: INTC) is scheduled to share its quarterly report on Thursday. The consensus estimates are $0.72 in EPS on $15.05 billion in revenue. Shares were last seen at $51.53. The stock has a 52-week range of $33.23 to $52.28, and the consensus price target is $54.22.

Microsoft Corp. (NASDAQ: MSFT) also is expected to report its most recent quarterly results on Thursday. The consensus analyst estimates are $0.85 in EPS and revenue of $25.77 billion. Shares of Microsoft were at $95.00 on Fridays close. The consensus price target is $105.21, and the 52-week range is $65.45 to $97.24.

On Friday, Chevron Corp. (NYSE: CVX) is scheduled to reveal its first-quarter results. The consensus estimates are $1.49 in EPS and $40.7 billion in revenue. Shares were trading at $122.31 as the week came to a close. The consensus price target is $135.88. The 52-week range is $102.55 to $133.88.

Look for Exxon Mobil Corp. (NYSE: XOM) to report its most recent quarterly results on Friday too. Analysts are looking for EPS of $1.16 and $66.78 billion in revenue. The shares were changing hands at $79.00 on Fridays close. The consensus price target is $85.98, and the 52-week range is $72.16 to $89.30.

Also see our separate previews of major pharma and biotech earnings and of the FANGs and more reporting this week.

Boeing, Caterpillar, Microsoft and More Dow Earnings Coming This Week

Although markets were somewhat shaky for the first big week of the new earnings reporting season, they ultimately closed up for the second week in a row. This is only a small step, but it has proven that solid fundamentals can stabilize this market.

Ten of the indexs 30 components are expected to share their results this week. The Dow Jones industrial index has been subject to incredible volatility since January, but as we mentioned before, this earnings season could stabilize the index.

24/7 Wall St. has put together a preview of the Dow Jones industrial average companies scheduled to report their quarterly results this week. Here, we have included the consensus earnings estimates from Thomson Reuters, as well as the stock price and trading history.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

3M Co. (NYSE: MMM) is set to report its most recent quarterly results on Tuesday. Analysts are looking for $5.57 in earnings per share (EPS) and $8.69 billion in revenue. Shares closed the week at $217.75, with a consensus price target of $237.92 and a 52-week trading range of $190.59 to $259.77.

International Business Machines Corp. (NYSE: IBM) is expected to report its first-quarter results on Tuesday. The analysts consensus forecast is EPS of $2.52 on $8.26 billion in revenue. Shares were changing hands at $156.71 as last week came to a close. The consensus price target is $170.75, and the stock has a 52-week range of $139.13 to $171.69.

Caterpillar Inc. (NYSE: CAT) will share its latest quarterly earnings on Tuesday. The consensus estimates call for $2.08 in EPS and $11.98 billion in revenue. Shares ended last week at $153.25, in a 52-week range of $93.81 to $173.24. The consensus analyst target is $178.26.

Coca-Cola Co. (NYSE: KO) is scheduled to share its quarterly report on Tuesday as well. The consensus estimates are $0.46 in EPS on $7.31 billion in revenue. Shares were last seen at $43.74. The stock has a 52-week range of $42.19 to $48.62, and the consensus price target is $50.03.

On Tuesday, Verizon Communications (NYSE: VZ) is expected to report its most recent quarterly results. The consensus analyst estimates are $1.71 in EPS and revenue of $9.05 billion. Shares of Verizon were at $47.90 on Fridays close. The consensus price target is $56.08, and the 52-week range is $42.80 to $54.77.

Boeing Co. (NYSE: BA) is expected to report its first-quarter results on Wednesday. The analysts consensus forecast is EPS of $2.56 on $22.09 billion in revenue. Shares were changing hands at $338.67 as last week came to a close. The consensus price target is $387.29, and the stock has a 52-week range of $175.47 to $371.60.

Visa Inc. (NYSE: V) will share its latest quarterly earnings on Wednesday. The consensus estimates call for $1.02 in EPS and $4.8 billion in revenue. Shares ended last week at $124.20, in a 52-week range of $90.98 to $126.88. The consensus analyst target is $140.09.

24/7 Wall St.
Wall Street Analysts Bullish on Energy as Oil Surges to 3-Year Highs

Intel Corp. (NASDAQ: INTC) is scheduled to share its quarterly report on Thursday. The consensus estimates are $0.72 in EPS on $15.05 billion in revenue. Shares were last seen at $51.53. The stock has a 52-week range of $33.23 to $52.28, and the consensus price target is $54.22.

Microsoft Corp. (NASDAQ: MSFT) also is expected to report its most recent quarterly results on Thursday. The consensus analyst estimates are $0.85 in EPS and revenue of $25.77 billion. Shares of Microsoft were at $95.00 on Fridays close. The consensus price target is $105.21, and the 52-week range is $65.45 to $97.24.

On Friday, Chevron Corp. (NYSE: CVX) is scheduled to reveal its first-quarter results. The consensus estimates are $1.49 in EPS and $40.7 billion in revenue. Shares were trading at $122.31 as the week came to a close. The consensus price target is $135.88. The 52-week range is $102.55 to $133.88.

Look for Exxon Mobil Corp. (NYSE: XOM) to report its most recent quarterly results on Friday too. Analysts are looking for EPS of $1.16 and $66.78 billion in revenue. The shares were changing hands at $79.00 on Fridays close. The consensus price target is $85.98, and the 52-week range is $72.16 to $89.30.

Also see our separate previews of major pharma and biotech earnings and of the FANGs and more reporting this week.

Here’s the Main Reason Microsoft Corporation Stock Is a Safe Haven

While many names recently have been pummeled, Microsoft Corporation (NASDAQ:MSFT) has been surprisingly defensive. Does that make Microsoft stock a buy or is it only a matter of time before it gets hit too?

From its highs, Microsoft stock is off about 7.2%. That’s actually better than the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) (down 10.2%) and actually pretty solid when you consider how far the FANG stocks have fallen from their highs. Consider:

Facebook Inc (NASDAQ:FB) -19%

Amazon.com, Inc. (NASDAQ:AMZN) -12%

Netflix, Inc. (NASDAQ:NFLX) -13%

Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) -15.5%

Best House in a Bad Neighborhood

Not that I’d consider FANG a “bad neighborhood” necessarily. But when considering the group’s recent performance, Microsoft’s 7% fall doesn’t look all that bad.

For one, it not being a part of the FANG group helps, as AMZN has been picked on by President Trump and FB’s been dumped ( although surprisingly not as hard as Twitter Inc (NYSE:TWTR) and Snap Inc (NYSE:SNAP)) because of its user data issue.

Microsoft doesn’t really have any bad laundry to air.

Think about it vs. its peers. Alibaba is one cloud alternative, but its shares have been under pressure as China and the U.S. engage in an escalating trade war. Microsoft’s biggest cloud competitors in the U.S. are AMZN and GOOGL. As we noted, the former’s been hit by Trump comments, while the latter’s caught up in FANG selling.

salesforce.com, inc (NASDAQ:CRM) is another alternative, down about 10% from its highs. But it’s in the midst of digesting a recent $6.5 billion acquisition of Mulesoft Inc (NYSE:MULE). While Microsoft may have a lower growth rate than CRM, it’s also got a much more attractive valuation. In this type of market, that’s a good sticking point.

You could make a case for other big tech, like Intel Corporation (NASDAQ:INTC), Cisco Systems, Inc. (NASDAQ:CSCO) or Qualcomm, Inc (NASDAQ:QCOM). But Microsoft stock has so far outperformed these names and has better growth prospects.

Who does that leave? Apple Inc. (NASDAQ:AAPL) is one choice, as it has a low valuation, solid growth and will return plenty of capital this year. Along with Microsoft stock, Apple could be a solid option for investors. For the record, it’s down about 8% from its highs, roughly in-line with Microsoft stock.

Valuing Microsoft Stock

Analysts are looking for revenue growth of 11% in 2018 and 8.6% growth in 2019. On the earnings front, estimates call for 11% growth this year and another 7.5% growth next year.

However, I’d be willing to bet the company can beat these estimates. Over the last 10 quarters (two and a half years!) Microsoft has missed revenue estimates just once and hasn’t missed an earnings estimate. That’s pretty darn dependable.

In any regard, we’re paying just 24 times this year’s earnings estimates for a best-in-breed technology stock. Microsoft has a rock-solid balance sheet, pays out a ~2% dividend yield and is sealing its position in the cloud-computing market. Further, it’s laying the groundwork for artificial intelligence and recently announced a $5 billion investment in the Internet of Things market.

The bottom line? CEO Satya Nadella has MSFT moving in the right direction.

Trading Microsoft Stock

On the chart below, you’ll see two trend-lines, one in black and the other in purple. Should black trend-line support give way, it opens up the possibility that MSFT stock has further to fall.

chart of Microsoft stock price
Click to Enlarge

Specifically, a decline into the mid- to low-$80s is possible. Microsoft consolidated in this range through November after a strong earnings result boosted the stock higher. Should the QQQ remain under pressure though, it’s likely that current trend-line support (black) and the 100-day moving average will give way, even though MSFT is a solid name to own in this stressed out market.

If that’s the case, I’d look for a retest of the 200-day moving average. Should the QQQ get some relief, look for Microsoft stock to approach its previous highs.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell held a position in GOOGL, CRM and AAPL. 

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Stocks Worth $2.2 Trillion Are “In Play”; Here’s What to Do

It’s rare that so many of the market’s biggest, most powerful companies get swept up in the proverbial whirlwind, but that’s what’s happening right now.

Headline risk is off the charts – and all over the place: Trump is gunning for Amazon.com Inc. (Nasdaq: AMZN).

Privacy controversy still swirls around Facebook Inc. (Nasdaq: FB), where CEO Mark Zuckerberg is publicly trading barbs with Apple Inc. (Nasdaq: AAPL) CEO Tim Cook – who is in turn said to be considering getting Intel Corp. (Nasdaq: INTC) chips out of his Mac machines by 2020.

And all this while Elon Musk’s crowd favorite Tesla Inc. (Nasdaq: TSLA) is burning cash at alarming rates.

Volatility rules right now. Like the saying goes, these are “Interesting times.”

To help make sense of where these stocks – held by millions of investors – stand in the big picture, Editor Mahdis Marzooghian sat down with our Technical Trading Specialist, D.R. Barton, Jr.

No one reads a stock like D.R. – he’s fresh from recommending the latest triple-digit (101.5%) gainer for his subscribers in the choppiest market in years.

Buy… hold… or flat-out dump: Here’s exactly what D.R. thinks of these marquee stocks right now…

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