Between the buyouts and the buoyant earnings reports, something has to lift this market higher before the year is over.

I didn't help matters, bringing up seven companies that are projected to post lower quarterly earnings this week. Thankfully, there will be far more companies improving their bottom lines this week than those going the wrong way.

Let's go over seven publicly traded companies that are expected to stand tall this week by posting year-over-year improvement on the bottom line.


Latest Quarter's EPS (estimated)

Year-Ago Quarter's EPS

Medtronic (NYSE: MDT)



JDS Uniphase (Nasdaq: JDSU)



Sigma Designs (Nasdaq: SIGM)



Toll Brothers (NYSE: TOL)



Frontline (NYSE: FRO)



OmniVision (Nasdaq: OVTI)



Net 1 UEPS (Nasdaq: UEPS)



Source: Yahoo! Finance.

Clearing the table
Let's start at the top with Medtronic. The company makes pacemakers, artificial cervical disks, and other health-care essentials. The stock is well-liked by our CAPS community, and has posted reasonable growth over the past two years. Earnings stability is a good thing during an economic lull. Medtronic also sells for a mere 10 times this fiscal year's projected profitability.  

As for JDS Uniphase, you can forget about its marginal loss a year ago. The network communications giant has gone on to deliver three stronger-than-expected quarterly profit reports after that. Investors will want to see if the company's accounts receivable are in check, but analysts do see another soundly profitable outing in Wednesday's report.

Sigma Designs makes microchips that drive home theater appliances such as Blu-ray players, high-definition TVs, and Internet protocol TV boxes. Three months ago, the popularity of its system-on-chip solutions delivered 27% in year-over-year growth on the top line, but earnings went the wrong way. The pros expect the bottom-line trend to refreshingly reverse itself this time around.

Toll Brothers is a real estate developer that targets the upper middle class with its high-end communities. Residential builders have been bouncing back this year, with some of them actually in the black for a change. Either way, Toll should have no problem improving on the gargantuan deficit it posted a year earlier.

Frontline is a Bermuda-based oil tanker specialist. Shippers usually offer more stability than the wild price swings behind the commodities and cargo they're moving around, though Frontline's earnings have been historically volatile on a quarterly basis.

OmniVision Technologies makes image sensor devices. This has become an obvious growth industry in the smartphone market, as more wireless handset makers emphasize the quality of the video and snapshots that they can provide. OmniVision is expected to easily reverse the loss it posted last year.

Finally, we have Net 1 UEPS. The "UEPS" in the company's moniker -- and ticker symbol -- stands for "universal electronic payment system." Net 1's smart-card technology facilitates financial transactions, especially for individuals and business that have limited access to conventional banking services in remote or emerging markets.

Cross those fingers, but know the fundamentals
Investors in these seven stocks have a right to be excited. They are all improving their financial situations. They are worthy of the gains that the market rally has bestowed upon them over the past year.

I wouldn't be uncomfortable owning any of these companies. They're doing the right thing, regardless of Mr. Market's mood swings.

The expectations may be high, but these seven stocks wouldn't have it any other way.

Are you a buyer or a seller of stocks these days? Share your strategy in the comment box below.