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Technology Stocks : Lucent Technologies (LU)
LU 2.720-1.4%3:05 PM EST

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To: Jack Hartmann who wrote (14425)4/19/2000 10:43:00 AM
From: David Hansen   of 21876
 
From: Thom Calandra's StockWatch
Fallout: Everybody to get from street
Plus: a PE-growth tool for those seeking bargains

By Thom Calandra, CBS MarketWatch
Last Update: 10:08 AM ET Apr 19, 2000
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Nortel, Cisco and Lucent "are all strong companies with growth supported by the expansion of the Internet." Lucent, which sells optical networking equipment and on Wednesday beat Wall Street earnings expectations for its most recent quarter, has a PEG of about 1.35 (or a 31 P/E compared to a year 2001 estimate of 23 percent earnings growth.

Cisco and Nortel, "although also down substantially from their peaks," have much higher PEGs, he says. Cisco trades at a PEG of 2.85 (89 P/E compared with 31 percent projected growth rate). Nortel trades at a PEG ratio of 2.67 (56 P/E on 21 percent growth rate).
The winner in Gambacorta's book? "We believe that Lucent represents an excellent value vs. its peers," he says.
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