4 Large-Cap Tech Value Plays (MSFT, DELL, CSCO, HPQ)

Investors that are looking for value in combination with solid potential growth for the long term should look at the large cap technology space. These stocks are trading at bargain basement multiples and offer the safety of large market capitalizations and premium brands. These stocks are particularly attractive for investors who are looking to allocate significant sums of money for the long term in expectation of generating a reasonable rate of return. Here are the four companies in the large cap tech space that are offering significant value at current levels. Microsoft MSFT - This company is a cash cow. Despite strong revenue growth, investors have marked this name down because of the company's perceived lack of innovation. At these levels, however, this is a very, very safe stock with potential upside. Two outcomes are likely for MSFT. First, the company gets its act together and begins to grow again, either through innovation or, more likely, a blockbuster acquisition. The second option is that MSFT begins a series of dividend raises. Either way, investors at these levels should do just fine. The stock trades at a trailing P/E of 11.66, a forward P/E of 10.12, and a PEG ratio of 1.11. At current levels, MSFT offers a dividend yield of 2.36%. Cisco CSCO - Cisco plunged in November after the company issued disappointing guidance. In fact, in the last month the stock is down almost 20%. For long term investors, this is a tremendous opportunity. CSCO has not offered tremendous capital appreciation over the last 5 years, but it has outperformed the market significantly and is much safer than most equities. Buy it on sale and hold CSCO for the long term. The shares are currently trading at a trailing P/E of 14.51, a forward P/E of 10.82, and a PEG ratio of 1. Nice value. Hewlett-Packard HPQ - This company has had its problems recently after CEO Mark Hurd was forced out and subsequently went to work at Oracle ORCL. For investors who have a long term horizon, however, this is an opportunity to buy a great company at a reasonable price. The company is a leader in the technology industry and has been for decades. It has been a long term creator of shareholder value, and that should not change going forward. The stock trades at a trailing P/E of 11.51, a forward P/E of 7.44, and a PEG ratio of just 0.85. The stock also offers a dividend yield of 0.70% at current levels. Dell DELL - Out of all of the stocks included here, DELL is probably the lowest quality name and the most risky. The stock is tremendously cheap, however, and there is a good chance that at some point the company will be taken private. The shares trade at a trailing P/E of 17.29, a forward P/E of 9.12 and a PEG ratio of 1.32.