McAfee' Inc.'s (MFE) shares have meandered since the July 5, 2009 Buy recommendation at a price of $40.82, Hence, I'm placing a hold on the company's shares. Here's why:

The company reported Q3 EPS of 62 cents, which beat the First Call Q3 EPS estimate of 61 cents, but of course Wall Street was not satisfied, and sold the stock. It seems with most companies it takes a 10% or better quarterly 'earnings beat' to keep institutional investors satisfied these days.

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

• Aetna Inc. (NYSE: AET) reported better-than-expected Q3 earnings and revenue, sending shares higher.
• Allergan Inc. (NYSE: AGN) reported better-than-expected Q3 numbers, sending shares higher.
• Bare Escentuals Inc. (NASDAQ: BARE) Q3 profit easily topped analysts' estimates, and shares surged.
• Cabot Oil & Gas Corp. (NYSE: COG) received an upgrade following the release of its Q3 numbers.
• Estee Lauder Companies Inc. (NYSE: EL) reported strong Q1 results, sending shares higher.
• E*Trade Financial Corp. (NASDAQ: ETFC) reported a smaller-than-expected net loss for Q3.
• Goodyear Tire & Rubber Co. (NYSE: GT) Q3 earnings topped estimates and revenue was up sequentially.

While more and more software becomes free, there is one market for which consumers and businesses are willing to shell out money. Yes, it's security software.

A mega player in the space, McAfee (NYSE: MFE), reported its latest earnings report Thursday, a day after its main rival Symantec (NASDAQ: SYMC) reported its own quite strong results.

It's suitable for moderate-risk investors to consider McAfee's (NYSE: MFE) shares, due to the likelihood of improving fundamentals in the second of half of FY2009 and into FY2010.

McAfee, computer security/anti-virus company extraordinaire, is not cheap at these price levels (P/E 20, stock price at/near $40), so it's not for the squeamish or low-risk investors.

With President Obama highlighting the national importance of cyber security, we turn to technology specialist Gregg Early to find the best investment ideas in the sector.

Noting that "cyber security is one of the biggest new sectors in the information technology industry," the editor of Personal Finance offers a trio of buys in the field -- McAfee (NYSE: MFE), Versar (AMEX: VSR), and Unisys (NYSE: UIS).

The advisor explains, "In exchange for an annual fee, McAfee allows users to download the basic security software and regular updates. These frequent updates are essential because virus and malware threats are constantly evolving.

One by one, the key indices appear to be breaking their support lines.

The Dow Industrials were the first to break, but the S&P 500 has also fallen through its support zone at 800 to 820, and so has the NYSE Composite. Only the Nasdaq is holding above its January low while the others are in a full test of their November bear market bottoms.

But despite the full attack on the bear market low, it would be dangerous to assume that a market sell-off is inevitable.

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

• Applied Materials Inc. (NASDAQ: AMAT) posted a Q1 loss and announced a workforce reduction.
• ArcelorMittal (NYSE: MT) swung to it's first ever quarterly loss due to lower demand and a big write-down.
• Buffalo Wild Wings Inc. (NASDAQ: BWLD) shares surged after it posted strong Q4 results.
• Chipotle Mexican Grill Inc. (NYSE: CMG) posted better-than-expected Q4 earnings as revenue surged.
• Genzyme Corp. (NASDAQ: GENZ) topped Q4 earnings estimates, sending shares higher.
• Global Traffic Network Inc. (NASDAQ: GNET) weaker-than-expected Q2 results led to a downgrade.
• Level 3 Communications Inc. (NASDAQ: LVLT) shares fell despite its upside surprise for Q4.
• Lions Gate Entertainment (NYSE: LGF) posted a bigger-than-expected Q3 loss despite revenue growth.

It's about that time again: Pepsi vs. Coke. No, not another taste test or another Battle of the Brands. It's time for the next quarterly results from these two soft drink titans.

Analysts surveyed by Thomson Reuters anticipate that PepsiCo Inc. (NYSE: PEP), global beverage and snack food giant, will report fourth-quarter earnings this week that are 9.1% higher that a year ago, or $0.88 per share. Revenue is expected to total $12.8 billion, which is 3.9% higher than last year. For the full year, the profit is expected to be $3.67 per share on revenue of $43.4 billion, up from $3.38 per share on $39.5 billion in 2007. PepsiCo's earnings met or beat estimates in four of the past five quarters, but missed by only two cents per share in the third quarter. The consensus recommendation of analysts remains to buy PEP. The share price fell to a 52-week low in January and is now 24.4% lower than it was a year ago. During the fourth quarter, PepsiCo declared a $0.42 per share quarterly dividend, agreed to acquire a Spitz International, and announced investments in China and Mexico.

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

• Aetna Inc. (NYSE: AET) posted a large-than-expected earnings decline due to bad investments.
• AmeriCredit Corp.(NYSE: ACF) was downgraded despite topping Q1 expectations.
• BP (NYSE: BP) Q3 earnings and revenue soared due to surging energy prices.
• CBS Corp. (NYSE: CBS) Q3 results included some big charges and no free cash.
• Clorox Co. (NYSE: CLX) posted strong Q1 results that easily topped Wall Street expectations.
• Colgate-Palmolive Co. (NYSE: CL) posted better-than-expected Q3 profits lifted by price increases.
• DivX Inc. (NASDAQ: DIVX) topped earnings expectations and offered revised guidance.
• Electronic Arts Inc. (NASDAQ: ERTS) narrowed its net loss in Q2 and matched expectations.
• First Solar Inc. (NASDAQ: FSLR) Q3 revenue more than doubled, results easily topping estimates.
• Hartford Financial Services Group Inc. (NYSE: HIG) posted its first quarterly loss in five years.
• Humana Inc. (NYSE: HUM) topped Q3 earnings estimates and offered full-year guidance.
• Kraft Foods Inc. (NYSE: KFT) solid Q3 results were helped by higher prices and offered neutral guidance.
• McAfee Inc. (NYSE: MFE) reported that it topped earnings estimates, sending shares higher.
• Nintendo Co. (OTC: NTDOY) posted solid results driven by popularity of the Wii and DS systems.
• Procter & Gamble Co. (NYSE: PG) topped Q1 expectations but lowered its full-year forecast.
• Sony Corp. (NYSE: SNE) Q3 earnings tumbled on the recession and exchange rate issues.
• Symantec Corp. (NASDAQ: SYMC) earnings were affected a loss of market share and currency issues.
• U.S. Steel Corp. (NYSE: X) reported the most profitable quarter in its history and beat estimates.
• Verizon Communications Inc. (NYSE: VZ) Q3 earnings matched expectations but shares rose.

Today was a busy economic day with data, but the selling in Asia as a "sell the news" reaction from the first Japan rate cut in seven years should have ruled the roost. Employment costs came in at 0.7% as expected, and personal income and spending showed no surprises. The markets also ignored a weak Chicago purchasing managers reading. This was a horrible month, but the DJIA ended up roughly 1,000 points higher from the close last Friday.

Below are today's unofficial closing bell levels:

Dow 9,325.01 +144.32 (1.57%)
S&P 500 968.75 +14.66 (1.54%)
Nasdaq 1,720.95 +22.43 (1.32%)
52-WEEK LOWS
Top Analyst Upgrades
Top Analyst Downgrades

Burlington Northern Santa Fe Corp. (NYSE: BNI) was after an SEC Filing noted that Warren Buffett's Berkshire Hathaway bought an additional 825,000 shares of common stock and now holds a beneficial ownership of 64,610,418 shares of common stock. Shares were up 2.7% at $88.93 right before the close today.

DivX Inc. (NASDAQ: DIVX) traded higher by over 6% after the online media player company beat its earnings expectations. The company also raised its fiscal non-GAAP earnings range to $0.58 to $0.60 from a prior range of $0.52 to $0.58, but lowered its revenue guidance because of product expansion and slower spending. Shares were up over 25% at $6.99 right before the close.

This post was written by Minyanville contributor Adam Katz.

Regarding Symantec Corporation (NASDAQ: SYMC) earnings, the company is having a tough time in this environment for several reasons. First, its consumer business saw a massive slowdown starting in September. Digital River, Inc. (NASDAQ: DRIV) reported earnings a day before SYMC and tipped the hand of SYMC's consumer business stating that its core business grew 27% sans SYMC, yet the business overall grew at 17% YoY.

Secondly, currency helped SYMC over the past two years and the strength in the dollar has created a stiff headwind.

Third, the company is losing market share in the enterprise to McAfee, Inc. (NYSE: MFE) which, due to more efficient R&D as well as smart acquisitions, can now outstack SYMC.

So what to do here? The stock is cheap, and given the amount of recurring revenue that it has, along with the number of pure play software companies that have technology SYMC needs, the company will likely assemble a competitive response. Then it becomes a function of management execution. Ultimately, I think MFE presents the better risk reward for growth investors, while SYMC is more appropriate for a value investor looking to buy discounted cashflow.

The quarter is winding down, and here are some highlights from this past week's earnings coverage from BloggingStocks:

• Air Products & Chemicals Inc. (NYSE: APD) lowered its guidance for the current quarter.
• AutoZone Inc. (NYSE: AZO) missed Q4 earnings estimates despite a modest increase in profits.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported disappointing Q2 results that met analysts' expectations.
• Chevron Corp. (NYSE: CVX) faces earnings declines if the Paulson plan fails, says Jim Cramer
• Circuit City Stores Inc. (NYSE: CC) earnings declines finally led to the ouster of CEO Schoonover.
• Discover Financial Services (NYSE: DFS) beat Q3 expectations despite charges and reserves.
• General Electric Co. (NYSE: GE) lowered its Q3 and full-year forecast due to financial sector woes.
• KB Home (NYSE: KBH) reported a greater-than-expected loss for Q3, and yet shares rose.
• Lennar Corp. (NYSE: LEN) posted significantly smaller Q3 losses on cost cutting.
• McCormick & Co. Inc. (NYSE: MKC) topped Q3 expectations due to the sale of a brand.
• Nike Inc. (NYSE: NKE) posted better-than-expected Q1 results despite a decline in net income.
• Research in Motion Ltd. (NASDAQ: RIMM) posted strong Q2 results accompanied by a weak forecast.
• Rite Aid Corp. (NYSE: RAD) Q2 net loss more than doubled and revenues were flat
• Secure Computing Corp. (NASDAQ: SCUR) missing estimates didn't stop a deal with McAfee (NYSE: MFE).
• 3Com Corp. (NASDAQ: COMS) Q1 results topped both analysts estimates and previous guidance.
• 3M Co. (NYSE: MMM) faces significant earnings declines if the Paulson plan fails, says Jim Cramer.

Also, are analysts' expectations for the the coming year too optimistic?

Upcoming quarterly reports include Circuit City (NYSE: CC), Walgreen (NYSE: WAG), Pepsi Bottling Group (NYSE: PBG), Constellation Brands (NYSE: STZ), Marriott International (NYSE: MAR), Family Dollar Stores (NYSE: FDO).

Visit AOL Money & Finance for more earnings coverage.

McAfee (NYSE: MFE) is the No. 2 player in the security software market. But the company's CEO, Dave DeWalt, definitely wants to be No. 1. In fact, he's been putting together a string of acquisitions to pump things up.

The latest deal came this week: McAfee purchased Secure Computing Corp. (NASDAQ: SCUR) for $465 million. On news of the deal, the company's shares spiked 23% to $5.58.

Secure Computing itself is an amalgam of a variety of acquisitions. For the most part, the company's products help deal with e-mail intrusions and network security. However, Secure Computing has had difficulties integrating its deals. As a result, the company has missed expectations on several earnings releases, which put lots of pressure on the stock price.

For some more insight on McAfee's latest deal I turned to Paul Roberts, Senior Analyst of Enterprise Security at The 451 Group, who said:

"Consolidation has been a long time coming in the enterprise security market. Despite persistent rumors that it might be acquired by a much bigger player, McAfee shows all intentions of staying independent and being one of the survivors, rather than road kill, as the enterprise security market consolidates. In the last twelve months, the company has made bold bets on data encryption and anti data leakage. This deal re-introduces McAfee as a player in the network security space after it was forced to downsize a few years back. We're interested to see how the company knits together the disparate technologies it has acquired."

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He is also the founder of BizEquity, a valuation website

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

• Aetna Inc. (NYSE: AET) net income rose on membership growth and a hike in premium rates.
• Altria Group Inc. (NYSE: MO) beat Q2 estimates, excluding charges related to its international cigarette unit.
• Arcelor Mittal (NYSE: MT) Q2 profit doubled on higher prices and it offered upbeat guidance.
• Comcast Corp. (NASDAQ: CMCSA) Q2 net income rose on higher rates but missed expectations.
• Corning Inc. (NYSE: GLW) earnings were in line with expectations, but revenue fell short.
• Exxon Mobil Corp. (NYSE: XOM) posted another record quarterly profit but Wall Street was looking for more.
• Garmin Ltd. (NASDAQ: GRMN) missed Q2 revenue estimates as fuel prices depressed growth.
• IAC/InterActive Corp. (NASDAQ: IACI) swung to a Q2 loss on a one time charge, but revenue rose.
• Kraft Foods Inc. (NYSE: KFT) beat Q2 earnings expectations on price hikes, and raised its guidance.
• McAfee Inc. (NYSE: MFE) reported healthy Q2 results and announced an acquisition.
• MetLife Inc. (NYSE: MET) missed earnings expectations and lowered its full-year guidance.
• Nucor Corp. (NYSE: NUE) reported record Q2 results and forecast a strong next quarter.
• Ryanair Holdings (NASDAQ: RYAAY) said Q1 profit tumbled on rising fuel prices and recession fears.
• Sirius Satellite Radio Inc. (NASDAQ: SIRI) said it expects a narrower Q2 loss ahead of the merger.
• Starbucks Corp. (NASDAQ: SBUX) swung to a Q3 loss on charges related to store closings.
• Valero Energy Corp. (NYSE: VLO) Q2 earnings fell 67% but still beat Wall Street estimates.
• Viacom Inc. (NYSE: VIA) posted better-than-expected earnings driven by Iron Man and Indiana Jones.

For more highlights from this week, see: General Motors, Motorola, Disney, Sony, Visa, CBS and others

Upcoming quarterly reports include Archer Daniels Midland (NYSE: ADM), Procter & Gamble (NYSE: PG), Jack-in-the-Box (NYSE: JBX), Cisco (NASDAQ: CSCO), News Corp. (NYSE: NWS), Whole Foods (NASDAQ: WFMI), Sprint Nextel (NYSE: S), Time Warner (NYSE: TWX), Freddie Mac (NYSE: FRE), and Blockbuster (NYSE: BBI).

Visit AOL Money & Finance for more earnings coverage.

For David DeWalt, the CEO of McAfee (NYSE: MFE), it's been an extremely busy quarter. He traveled to 15 countries and met with over 500 customers. He even gave 11 executive keynote addresses (actually, I'm not sure if DeWalt sleeps).

Well, the hard work is paying off, as seen with McAfee's latest quarter results. Revenues came to $396.8 million, up 26% over the past year. Earnings were $47.8 million, or $0.30 per share (see more of today's earnings news).

McAfee continues to build on its product offerings (the company is the #2 player in the security space). In fact, the company snagged 21 deals over $1 million.

What's more, McAfee announced the purchase of Reconnex Inc. for $46 million. Essentially, the company develops sophisticated technology to monitor data on networks (which is done through appliance computers). Reconnex has about 1.5 million managed users.

Interestingly enough, DeWalt wrote a blog post about the deal (yes, I'm not sure how he finds the time to blog too). According to him:

"Reconnex, coupled with our current data protection solutions, gives us the network and endpoint presence that will allow us to leapfrog all other data protection vendors and reinforces our position as the largest dedicated security provider."

So far in today's trading, McAfee's stock is up 8.43% to $35.51.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.