Microsoft Corporation (MSFT), Intel Corporation (INTC), Apple Inc. (AAPL): Tech Investors Need a Chill Pill

Value stocks in tech
The biggest reason I think investors need to chill out about earnings from Microsoft Corporation (NASDAQ:MSFT), Intel Corporation (NASDAQ:INTC), and Apple Inc. (NASDAQ:AAPL) is the incredible value at which these stocks trade. Below, I’ve outlined that Microsoft and Apple Inc. (NASDAQ:AAPL) both trade with P/E ratios below 10 after accounting for cash and Apple Inc. (NASDAQ:AAPL)’s trailing P/E ratio of 7.5 is usually reserved for dying companies. Intel Corporation (NASDAQ:INTC) is a bit more expensive, but it pays a hefty 3.9% dividend and still has a choke hold on the PC chip business, even if it’s in slow decline.

No time to panic
These are no longer the growth stocks they used to be, but the market has already priced no growth into shares. We know that the PC market is in decline, so slow Windows, chip, and Mac sales shouldn’t surprise anyone. The reaction to earnings was overdone and, over the long term, I think investors will settle down and push each of these industry titans higher.

The article Tech Investors Need a Chill Pill originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of Apple, Microsoft, and Intel. The Motley Fool recommends and owns shares of Apple and Intel. It also owns shares of Microsoft.

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