Goldman gives Intel and Cisco a big push

Goldman Sachs keeps a list of the Top Five Tech Value Stocks. The list includes big tech companies like Microsoft (NASDAQ: MSFT) and Symantec (NASDAQ: SYMC). To make room for Intel (NASDAQ: INTC) and Cisco (NASDAQ: CSCO), IBM (NYSE: IBM) and Accenture (NYSE: ACN) were pushed off the list.

Intel was added to the list because Goldman thinks it will beat Q2 earnings. Cisco was added because it falls into the "top quartile on both growth and value lists" at the investment bank.

The problem with these lists is often that, for shareholders, they are a look into the rear view mirror. Wall Street has already caught on to the fact that these are promising companies, a fact that may already be priced into their shares.

Over the last year, Intel's shares are up nearly 40%. Most of the concerns about it continuing to lose market share to AMD (NYSE: AMD) are now gone. Cisco's shares are up about 50% over the same period. The market's perception that its router business will benefit from cable and telco upgrades to handle more broadband traffic have pushed the shares relentlessly forward.

To say that there is something wrong with Intel or Cisco would be to get on the wrong side of Wall Street's perception. But that does not mean the shares are going higher.

Douglas A. McIntyre is a partner at 24/7 Wall St.