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RadiSys Corporation (NASDAQ: RSYS) makes system products for embedded computer applications used in the manufacturing automation, medical, transportation, telecommunications, gaming and test equipment markets. Products include embedded boards, board-level modules and chip-level components. The company also offers system integration and repair services. Clients include Nokia (NYSE: NOK), Nortel Networks (NYSE: NT) and IBM (NYSE: IBM).

The firm pleased investors last week, when it reported Q2 EPS of 14 cents and revenues of $97.6 million. Analysts had been expecting six cents and $87.8 million. The CEO attributed success to strong demand for the company's wireless and IP media server products. Management also guided Q3 EPS to 16-22 cents (nine cent consensus) and Q3 revenues to $98-$103 million ($91.2M consensus).

RSYS shares popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy", one "buy" and one "hold". Analysts see a 15% average annual growth rate, through the next five years. The RSYS Price to Sales ratio (0.71), Price to Book ratio (1.27), Price to Cash Flow ratio (9.53), Price to Free Cash Flow ratio (7.72), Sales Growth rate (29.61%) and EPS Growth rate (-0.09 to +0.14) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $8.02 and $17.48. A stop-loss of $9.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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• Aluminum Corp of China ADS (NYSE: ACH)
• China Life Insurance ADS (NYSE: LFC)
• China Med Technologies Inc. (NASDAQ: CMED)
• China Mobile Limited (NYSE: CHL)
• Huaneng Power Intl ADS (NYSE: HNP)
• PetroChina Co Ltd ADR (NYSE: PTR)

• East West Bancorp (NASDAQ: EWBC)
• Honeywell Intl (NYSE: HON)
• International Business Machines (NASDAQ: IBM)
• Johnson and Johnson (NYSE: JNJ)
• Johnson Controls (NYSE: JCI)
• United Technologies (NYSE: UTX)

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of ACH, HNP, JNJ, PTR.

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"Any further market weakness creates creates another opportunity to acquire some outstanding stocks," suggests Kelley Wright, noted for his focus on blue chip, dividend-paying stocks.

In his Investment Quality Trends newsletter, he looks at the benefits of keeping a long-term focus, the value of dividend districutions to an investor's long-term returns, and his current "timely ten" picks for conservative investor.

"The cash dividend for the Dow is $322.40. One year ago the dividend was $284.06. Amidst all the turmoil in the markets and the economy something must be going right with the Dow 30 companies because the dividend is ever climbing.

"Dividends, as we all know, can only come from the reality of earnings; you can't pay what you don't have. The dividend yield on the Dow is currently 2.66%, which represents an 11% downside to a 3.0% yield and the historically repetitive area of Undervalue.

"Will the Average make it down to that level? No one knows but that isn't the point. At current levels the upside is FAR greater, particularly in many of the stocks in our Undervalued area.

"Fellow value lover and famed contrarian David Dreman cited recently that there have been 12 panics and recoveries since World War II.

"What his studies showed was that after the markets hit their lows, they were up 36.6% a year on average afterwards - and there wasn't one year that was negative. Two years after the panic lows the market, as judged by the Dow Industrials, was up 53% on average.

"Based on the current Dow dividend of $318.41, a 53% advance would still fall below the current Overvalue area of Dow 21,227, based on a dividend yield of 1.50%.

"Pie in the sky you say? Maybe, but over the long-term it is hard to bet against capitalism and the markets. In other words, this too shall pass.

"Meanwhile, the good news is that the retracement on the Industrials has created another opportunity to acquire some outstanding stocks that I suggest we will hold for quite some time.

"Our current 'Timely Ten' consists of Undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better, and a designation for exemplary long-term dividend growth.

"These stocks also offer a P/E ratio of 15 or less, a payout ratio of 50% or less (75% for Utilities), debt of 50% or less (75% for Utilities), and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation.

"It is our reasoned expectation based on our methodology and experience for what we believe will perform best over the next five years.

"Do we believe that all 10 will go up simultaneously or immediately? Of course not. Our four decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for appreciation."

Here are his most updated Timely Ten:

Colgate Palmolive (NYSE: CL)
PepsiCo (NYSE: PEP)
Procter & Gamble (NYSE: PG)
Johnson & Johnson (NYSE: JNJ)
McDonald's (NYSE: MCD)
Wal-Mart (NYSE: WMT)
International Business Machines (NYSE: IBM)
General Electric (NYSE: GE)
Altria Group (NYSE: MO)
Automatic Data Processing (NYSE: ADP)

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVID) sees strong Q1 results driven by Guitar Hero.
• Allegheny Technologies Inc. (NYSE: ATI) raised its Q2 earnings guidance ahead of its report.
• Cintas Corp. (NASDAQ: CTAS) strong Q4 and full-year results included a record quarterly revenue.
• Citigroup (NYSE: C) posted better-than-expected results despite a big loss on further write-downs.
• eBay Inc. (NASDAQ: EBAY) reported better-than-expected results and offered a soft outlook (see transcript).
• Fastenal Co. (NASDAQ: FAST) posted strong Q2 earnings despite the housing slump but lower revenues.
• Grainger Inc. (NYSE: GWW) posted strong Q2 results on expansion in Mexico and China.
• Harley-Davidson Inc. (NYSE: HOG) beat Q2 expectations despite profit and revenue declines.
• International Business Machines Corp. (NYSE: IBM) easily topped Wall Street earnings expectations.
• Johnson & Johnson (NYSE: JNJ) beat Q2 estimates and raised its full-year forecast (see transcript).
• Kimberly-Clark Corp. (NYSE: KMB) warned of lower Q2 earnings due to energy and distribution costs.
• Merrill Lynch & Co. (NYSE: MER) reported worse-than-expected Q2 results on further write downs.
• Microsoft Corp. (NASDAQ: MSFT) earnings surged but investors were put off by its full-year guidance.
• Procter & Gamble Co. (NYSE: PG) reaffirmed its guidance following the Kimberly-Clark warnings.
• United Technologies Corp. (NYSE: UTX) beat Q2 estimates, lifting shares from a recent 52-week low.
• ValueClick Inc. (NASDAQ: VCLK) posted weak results and warned about the second half of the year.

For more highlights from this week, see: Google, Intel, JPMorgan, Coca-Cola, Nokia and others

The earnings crunch continues next week. Among companies scheduled to report are Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Merck (NYSE: MRK), Texas Intruments (NYSE: TXN), Caterpillar (NYSE: CAT), Halliburton (NYSE: HAL), United Parcel Service (NYSE: UPS), Wachovia (NYSE: WB), Yahoo! (NASDAQ: YHOO), Amazon (NASDAQ: AMZN), Anheuser-Busch (NYSE: BUD), AT&T Inc. (NYSE: T), McDonald's (NYSE: MCD), PepsiCo (NYSE: PEP), Pfizer (NYSE: PFE), Boeing (NYSE: BA), Hershey (NYSE: HSY), and Southwest Airlines (NYSE: LUV).

Visit AOL Money & Finance for more earnings coverage.

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The Wall Street Journal reports a mixed picture on technology earnings. Google Inc. (NASDAQ: GOOG) and Microsoft Corporation (NASDAQ: MSFT) disappointed investors but International Business Machines (NYSE: IBM) put impressive numbers on the board.

Here are the details:

• Google. The Journal reports that Google's net was up 35%, but investors expected it to make $4.74 excluding stock options -- 11 cents more than the $4.63 it reported -- Google lost 10% of ita market value after-hours.
• Microsoft. The Journal reported that Microsoft's net was up 42%, it reported EPS of 46 cents a share. But investors did not like its guidance. Microsoft's guidance of $2.12 to $2.18 per share on revenue from $67.3 billion to $68.1 billion was less than the $2.16 on revenue of $67.3 billion that analysts expected. Microsoft lost 5.7% of ots market value after-hours.
• IBM. The Journal reports that IBM's net was up 22% to $1.98. Investors had expected it to make $1.82 -- its stock was up slightly in after-hours trading.

What do these results tell us about the companies and the economy? It could be that for the time being the consumer is hurting more than business buyers of technology. IBM's solid earnings suggest that businesses are in better financial shape than cash-strapped consumers.

Microsoft's disappointing outlook is somewhat of a concern but the 10% drop in Google's stock suggests its shareholders would be better off if its started offering guidance to Wall Street. But for a company of IBM's size to post 22% growth in these dire economic times is an eloquent statement of its strength.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

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Classic blue-chip tech company IBM (NYSE: IBM), whose colleagues include Dell (NASDAQ: DELL), Microsoft (NASDAQ: MSFT) and Hewlett-Packard (NYSE: HPQ), is due to report earnings on Thursday after the market closes up shop. What are investors looking for? Growth, of course. Should they expect it?

Well, according to Trey Thoelcke's earnings data, Wall Street is looking for IBM to deliver earnings per share around the $1.82 mark for the second quarter. Revenues should be near $25.9 billion. If Big Blue hits both of these numbers, it would show that the company is coming along fine and that the current level of the stock price is justified. Of course, Wall Street doesn't want IBM to merely hit those numbers. Oh no, that would be too easy. Wall Street wants IBM to beat those expectations. In terms of the bottom line, there is positive recent history for an earnings beat. The company handily beat estimates in the last two quarters, and met expectations in the two quarters previous to that time frame.

Will the company beat expectations? I think it will. The momentum seems to be favorable for such an outcome. In fact, in a relative sense, the stock isn't signaling a terrible report by any stretch of the imagination. The 52-week low is $97.04 and the 52-week high is $129.99. IBM closed up on Wednesday over 2% to a share price of $125.94. Doesn't sound like the market is worried, does it?

IBM isn't on my watch list, but hey, if you want to throw it on yours, be my guest, I wouldn't argue against it. I'd be careful about buying before the company issues its report; bad timing is not a good thing in this market. But I think IBM's second-quarter stats will show that Big Blue and its business is fine, and that the company will be finding more opportunities for growth going forward.

Disclosure: I don't own any company mentioned; positions can change at any time.

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Reuters reports that today is a big one for bank and technology earnings. It looks like Merrill Lynch (NYSE: MER) will lose big and will try to soften the blow with an announcement about selling its 20% of Bloomberg LP for $4.5 billion to its founder, New York mayor, Michael Bloomberg. JP Morgan Chase (NYSE: JPM) and a handful of big technology companies are expected to report profits. But will they be enough?

Meanwhile, how can we make sense of yesterday's 276 point rally on Wall Street? Nobody knows what happened, but theories abound: the price of oil fell -- possibly due to anticipation that the Fed would raise interest rates to deal with inflation that is roaring out of control. Higher interest rates would strengthen the dollar, which would drive down the price of oil since it's traded in dollars. But I think yesterday's market was a short-covering frenzy. With the SEC foolishly squeezing the shorts, they needed to cover their bets that financials would fall further. Of course good news from Wells Fargo (NYSE: WFC) didn't hurt.

Today's earnings -- with estimates courtesy of a Reuters analyst survey -- are likely to move the market. Here's a roundup:

• Merrill Lynch is expected to lose $1.94
• JPMorgan was expected to make $0.44, down 63% from 2007. At a Price/Earnings to Growth (PEG) ratio of 0.4 and a P/E of 12 on earnings forecast to grow 31% to $3.34 in 2009, it looks cheap. CNNMoney reports it made 54 cents -- well ahead of expectations and its shares are up 5% in premarket.
• Microsoft Corp. (NASDAQ: MSFT) will earn 47 cents a share, a 21% increase from last year. At a PEG ratio of 1.1 and a P/E of 15 on earnings forecast to grow 14.3% to $2.16 in 2009, it looks reasonably priced.

• Google Inc. (NASDAQ: GOOG) is likely to earn $4.72, up 61% from last year. At a PEG ratio of 1.7 and a P/E of 36 on earnings forecast to grow 25% to $21.57 in 2009, it looks expensive.
• International Business Machines (NYSE: IBM) is anticipated to earn $1.82, 21% higher than 2007. At a PEG ratio of 1.3 and a P/E of 16 on earnings forecast to grow 12% to $9.57 in 2009, it looks priced about right.

As always, I predict the market will boost the shares of companies that beat these expectations and raise their revenue and profit growth forecasts. For those that fail to beat and raise, investors could slash their shares. JPMorgan beat expectations this morning and the upside surprise is rewarding those who bet on it prior to the announcement.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He owns Wells Fargo shares and has no financial interest in the other securities mentioned.

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As the second quarter earnings crunch begins in earnest this week, the bear market has investors jittery and prognosticators spinning out dire warnings. In the wake of mixed results from Alcoa (NYSE: AA) and General Electric (NYSE: GE) kicking things off last week, here's a look at what Wall Street is expecting from many of the companies scheduled to report this coming week.

Analysts surveyed by Thomson Financial are expecting the following companies to report a rise in earnings when compared to the same period of the previous year.

• Nucor Corp. (NYSE: NUE): $1.80 EPS (36.6%) on sales of $6.4 billion (+53.0%)
• Google Inc. (NASDAQ: GOOG): $4.74 EPS (24.9%) on sales of $3.9 billion (+41.6%)
• Nokia Corp. (NYSE: NOK): 56 cents EPS (23.2%) on sales of $19.9 billion (+17.8%)
• CSX Corp. (NYSE: CSX): 90 cents EPS (21.1%) on sales of $2.9 billion (+12.8%)
• Altera Corp. (NASDAQ: ALTR): 27 cents EPS (18.5%) on sales of $346.7 million (+8.4%)
• IBM (NYSE: IBM): $1.82 EPS (+17.6%) on sales of $25.9 billion (+9.0%)
• eBay Inc. (NASDAQ: EBAY): 41 cents EPS (17.1%) on sales of $2.2 billion (+18.0%)
• W.W. Grainger Inc. (NYSE: GWW): $1.46 EPS (17.1%) on sales of $1.7 billion (+8.0%)
• Microsoft Corp. (NASDAQ: MSFT): 47 cents EPS (17.0%) on sales of $15.7 billion (+17.0%)
• Honeywell International Inc. (NYSE: HON): 94 cents EPS (17.0%) on sales of $9.2 billion (+7.9%)

• Eaton Corp. (NYSE: ETN): $1.95 EPS (12.8%) on sales of $4.1 billion (+27.5%)
• Intel Corp. (NASDAQ: INTC): 25 cents EPS (12.0%) on sales of $9.3 billion (+7.4%)
• Abbott Laboratories (NYSE: ABT): 79 cents EPS (12.7%) on sales of $7.2 billion (+13.2%)
• Baxter International Inc. (NYSE: BAX): 82 cents EPS (12.2%) on sales of $3.1 billion (+7.7%)
• Coca-Cola Co. (NYSE: KO): 96 cents EPS (11.5%) on sales of $8.9 billion (+15.6%)
• Danaher Corp. (NYSE: DHR): $1.06 EPS (11.3%) on sales of $3.2 billion (+18.4%)
• United Technologies Corp. (NYSE: UTX): $1.30 EPS (10.8%) on sales of $15.3 billion (+9.9%)
• Schlumberger Ltd. (NYSE: SLB): $1.12 cents EPS (8.9%) on sales of $6.5 billion (+14.8%)
• Illinois Tool Works Inc. (NYSE: ITW): 97 cents EPS (7.2%) on sales of $4.6 billion (+9.9%)
• Yum! Brands Inc. (NYSE: YUM): 42 cents EPS (7.1%) on sales of $2.6 billion (+7.6%)
• Johnson & Johnson (NYSE: JNJ): $1.12 EPS (6.3%) on sales of $16.0 billion (+5.7%)
• Safeway Inc. (NYSE: SWY): 52 cents EPS (5.8%) on sales of $10.2 billion (+3.9%)
• Genuine Parts Co. (NYSE: GPC): 79 cents EPS (3.8%) on sales of $2.9 billion (+2.8%)

Analysts are looking for a number of the big financials reporting next week to post declines in earnings, but I've focused on those companies in a separate post (see Financials expected to post earnings declines, losses this week). The companies below are also expected to post declines in profit.

• Novellus Systems Inc. (NASDAQ: NVLS): 4 cents EPS (-91.1%) on sales of $251.5 million (-39.6%)
• Delta Air Lines Inc. (NYSE: DAL): 11 cents (-84.3%) on sales of $5.4 billion (+8.3%)
• Mattel Inc. (NYSE: MAT): 3 cents EPS (-50.0%) on sales of $1.0 billion (+3.9%)
• Harley-Davidson Inc. (NYSE: HOG): 76 cents EPS (-33.3%) on sales of $1.4 billion (-12.4%)
• Gannett Inc. (NYSE: GCI): $1.02 EPS (-17.7%) on sales of $1.7 billion (-10.0%)
• Sherwin-Williams Co. (NYSE: SHW): $1.39 EPS (-8.6%) on sales of $2.2 billion (-0.3%)

Continental Airlines Inc. (NYSE: CAL) is expected to swing to a loss of 52 cents (from $2.10 EPS last year) on $4.1 billion (+9.3%). And Advanced Micro Devices Inc. (NASDAQ: AMD) is expected to narrow its loss to 52 cents per share (from 95 cents per share last year) on sales of $1.5 billion (+5.2%).

With expectations listed out this way Wall Street seems pretty optimistic about earnings (other than for financial companies; see Financials expected to post earnings declines, losses this week). But we'll see this week whether the companies above can live up to these expectations. Do you think they will?

Other economic data coming out next week include:

• Producer price index (June 2008), Tuesday, 8:30 a.m. ET
• Business inventories (May 2008), Tuesday, 10:00 a.m. ET
• Consumer price index (June 2008), Wednesday, 8:30 a.m. ET
• NAHB housing market index (July 2008), Wednesday, 1:00 p.m. ET
• Housing starts (June 2008), Thursday, 8:30 a.m. ET

See also Market highlights for next week: Google, Microsoft reporting earnings

Visit AOL Money & Finance for more earnings coverage.

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QLogic Corporation (NASDAQ: QLGC) provides