A few big technology names will report quarterly earnings this week after markets tanked last week. The Nasdaq index (QQQ) fell 3.7%. Unless companies report strong results and do not issue a warning, they may fall, too.
Laser maker Lumentum (NASDAQ: LITE) trades at favorable valuations (P/E of 10.9x and forward P/E of 10.5x) but still fell 10.6% last week. The company is expected to grow EPS 17% in the next year. EPS will jump four-fold this year, unless the company issues a warning, blaming a global slowdown and trade disruptions in China.
Hard disk supplier Seagate Technology (NASDAQ: STX), which fell 11.4% last week, could face the same selling Western Digital (NASDAQ: WDC) suffered after the latter cut its demand outlook and took a charge. STX stock trades at a 6.7x P/E, similar to that of WDC stock. Seagate pays a better dividend that yields 6.5%, compared to 4.5% with WDC.
GoPro (NASDAQ: GPRO) is a former fad stock whose market cap is under $1B. The stock topped $7.50 and could rebound if the company forecasts strong Hero camera sales, thanks to the latest refresh. The newest action camera has a software-driven image stabilizer. This could renew a fresh round of upgrades from loyal fans.
