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As we kick off the second week of earnings season, I wanted to examine the growth estimates for 9 of the major tech companies, and the results were quite interesting. Only four of these companies are expected to grow in a positive manner, while the other five are expected to perform negatively.

Whenever I develop a screen, I tend to use the simplicity of single variables and in this case I used projected second-quarter growth, and wanted to take a closer look at each from a numbers standpoint.

For this screen I wanted to meet the following criteria:

  • 9 Major Tech Stocks That Haven't Reported Earnings As Of July 16
  • A Minimum Market Cap Of $7.5 Billion Dollars
  • Currently trading at P/E Ratio of 20 or less (AMZN is the exception)

Symbol

Price

Mkt. Cap

Q2 PG

FY PG

AAPL

604.97

570.32 B

33.40%

69.50%

CSCO

16.31

87.00 B

15.00%

13.60%

GOOG

576.52

187.63 B

14.90%

19.00%

IBM

186.01

213.57 B

11.00%

12.10%

INTC

25.25

127.26 B

-3.70%

2.10%

MSFT

29.39

247.53 B

-10.10%

-0.40%

HPQ

18.98

37.37 B

-11.80%

-16.60%

DELL

12.28

21.46 B

-14.80%

-8.90%

AMZN

218.39

97.42 B

-95.10%

-10.20%

4 Companies Projected To Grow In A Positive Direction

Apple, Inc. - Q2 Projection: 33.40% - Ranked first in terms of Q2 growth, the stock has been nothing short of stellar throughout 2012. Trading in a 52-week range of $353.02 (52-week low) and $644.00 (52-week high), AAPL has surpassed analysts' estimates by an average 22% in three of the last four quarters, with the only exception coming during September 2011, when the company missed estimates by $0.34/share or 4.6%. Analysts are estimating AAPL will earn $10.39/share on revenue of $37.41 billion dollars, and if the last two quarters were any indication of things, the company could beat estimates by as much as $2.00/share. Potential investors should pay close attention to the company's second-quarter sales numbers with regard to the iPad and iPhone 4S, and well as any news regarding the launch of the iPhone 5.

Cisco Systems, Inc. - Q2 Projection: 15.00% - Ranked second in terms of Q2 growth, the stock trades in a 52-week range of $13.30 (52-week low) and $21.30 (52-week high). CSCO has surpassed analysts' estimates by an average 6.75% over the last four quarters. Analysts are estimating CSCO will earn $0.46/share on revenue of $11.63 billion dollars, and if the last four quarters were any indication of things, the company could beat estimates by as much as $0.08/share. Potential investors should pay close attention to the recent acquisition of Virtuata, as it could very well enhance the company's growth in coming quarters.

Google, Inc. - Q2 Projection: 14.90% - Ranked third in terms of Q2 growth, the stock trades in a 52-week range of $480.60 (52-week low) and $670.25 (52-week high). GOOG has surpassed analysts' estimates by an average 4.375% over the last four quarters, with the only exception coming during December 2011, when the company missed estimates by $1.00/share or 9.5% . Analysts are estimating GOOG will earn $10.04/share on revenue of $8.41 billion dollars, and if the last four quarters were any indication of things, the company could beat estimates by as much as $0.80/share. Potential investors should pay close attention to the company's earnings announcement due out July 19.

International Business Machines Corp. - Q2 Projection: 11.00% - Ranked fourth in terms of Q2 growth, the stock trades in a 52-week range of $157.13 (52-week low) and $210.69 (52-week high). IBM has surpassed analysts' estimates by an average 2.675% over the last four quarters. Analysts are estimating IBM will earn $3.43/share on revenue of $26.32 billion dollars, and if the last four quarters were any indication of things, the company could beat estimates by as much as $0.09/share. Potential investors should pay close attention to the company's second-quarter earnings, which are due out on Wednesday, July 18.

5 Companies Projected To Grow In A Negative Direction

Intel Corp. - Q2 Projection: -3.70% - Ranked fifth in terms of Q2 growth, the stock trades in a 52-week range of $19.16 (52-week low) and $29.27 (52-week high). INTC has surpassed analysts' estimates by an average 5.85% over the last four quarters. Analysts are estimating INTC will earn $0.52/share on revenue of $13.57 billion dollars, and if the last four quarters were any indication of things, the company could beat estimates by as much as $0.06/share. Potential investors should pay close attention not only to the company's upcoming earnings but to the overall behavior of the U.S.-based PC marketplace, if demand for PCs continues to decline INTC could see a significant drop in its stock price.

Microsoft Corp. - Q2 Projection: -10.10% - Ranked sixth in terms of Q2 growth, the stock trades in a 52-week range of $23.79 (52-week low) and $32.95 (52-week high), MSFT has surpassed analysts' estimates by an average 6.25% over the last four quarters. Analysts are estimating MSFT will earn $0.62/share on revenue of $18.14 billion dollars, and if the last four quarters were any indication of things, the company could beat estimates by as much as $0.06/share. Potential investors should not only pay close attention to the company's upcoming earnings, but the development and sales of Windows 8 and Office 365, which launched today.

Hewlett-Packard Company - Q2 Projection: -11.80% - Ranked seventh in terms of Q2 growth, the stock trades in a 52-week range of $18.77 (52-week low) and $37.70 (52-week high). HPQ has surpassed analysts' estimates by an average 4.45% over the last four quarters. Analysts are estimating HPQ will earn $0.97/share on revenue of $30.38 billion dollars, and if the last four quarters were any indication of things, the company could beat estimates by as much as $0.07/share. Potential investors should not only pay close attention to the company's earnings but to the behavior of the U.S.-based PC and retail printer marketplace.

Dell, Inc. - Q2 Projection: -14.80% - Ranked eighth in terms of Q2 growth, the stock trades in a 52-week range of $11.68 (52-week low) and $18.36 (52-week high), DELL has missed analysts' estimates by an average 4.20% over the last two quarters. Analysts are estimating DELL will earn $0.46/share on revenue of $14.75 billion dollars, and if the last four quarters were any indication of things, the company could miss estimates by as much as $0.08/share. Potential investors should not pay close attention to the company's earnings but to the company's enterprise solutions strategy.

Amazon, Inc. - Q2 Projection: -95.10% - Ranked last in terms of Q2 growth, the stock trades in a 52-week range of $166.97 (52-week low) and $246.71 (52-week high), AMZN has surpassed analysts' estimates by an average 99.725% over the last four quarters, with the only miss coming during the third quarter of 2011, when AMZN missed estimates by 41.70%. Analysts are estimating AMZN will earn $0.02/share on revenue of $12.91 billion dollars, and if the last four quarters were any indication of things, the company could beat estimates by as much as $0.03/share. Potential investors should not only pay close attention to the company's earnings due out on July 26, but to the company's product development strategy, which includes sales of the Kindle Fire, and the possibility of a smartphone.

Source: The Interesting Second-Quarter Growth Prospects Of 9 Major Tech Companies