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The following is a list of the most undervalued tech stocks, when comparing the current price against the average analyst target price (used as a proxy for fair value).

We last wrote about this screen on October 13, 2010. On that day, the screen produced 20 companies. Since then, 15 out of 20 companies mentioned in that article have outperformed the S&P 500 index (a success rate of 75.00%). The screen averaged a return of 14.81% vs. an index return of 5.29%. Click here to access a full breakdown of the screen's past performance.

Target price data sourced from Finviz. Full analysis below

Interactive Chart: Press Play to compare analyst ratings for the top five stocks mentioned below. Analyst ratings have been sourced from Zacks. Note: The numbers on top of the items represent the forward P/E ratio.


The list has been sorted by the discount to average target price.

1. Micron Technology Inc. (NASDAQ:MU): Semiconductor Industry. Market cap of $8.03B. Current price at $8.06 vs. average analyst target price at $10.73 (implies a discount of -24.88%). Short float at 7.85%, which implies a short ratio of 2.09 days. The stock has lost -10.29% over the last year.

2. Hewlett-Packard Company (NYSE:HPQ): Diversified Computer Systems Industry. Market cap of $94.2B. Current price at $41.54 vs. average analyst target price at $53.8 (implies a discount of -22.79%). Short float at 0.86%, which implies a short ratio of 0.9 days. The stock has lost -17.45% over the last year.

3. Alcatel-Lucent (NYSE:ALU):
Communication Equipment Industry. Market cap of $6.94B. Current price at $3.07 vs. average analyst target price at $3.93 (implies a discount of -21.88%). Short float at 1.37%, which implies a short ratio of 1.8 days. The stock has lost -8.08% over the last year.

4. Electronic Arts Inc. (ERTS): Multimedia & Graphics Software Industry. Market cap of $5.24B. Current price at $15.79 vs. average analyst target price at $20.08 (implies a discount of -21.36%). Short float at 4.91%, which implies a short ratio of 2.99 days. The stock has lost -3.88% over the last year.

5. Adobe Systems Inc. (NASDAQ:ADBE): Application Software Industry. Market cap of $14.32B. Current price at $28.15 vs. average analyst target price at $35.76 (implies a discount of -21.28%). Short float at 3.03%, which implies a short ratio of 1.22 days. The stock has lost -21.32% over the last year.

6. Cisco Systems, Inc. (NASDAQ:CSCO): Networking & Communication Devices Industry. Market cap of $108.31B. Current price at $19.54 vs. average analyst target price at $24.52 (implies a discount of -20.31%). Short float at 0.73%, which implies a short ratio of 0.56 days. The stock has lost -18.04% over the last year.

7. Marvell Technology Group Ltd. (NASDAQ:MRVL):
Semiconductor Industry. Market cap of $12.44B. Current price at $19.13 vs. average analyst target price at $23.58 (implies a discount of -18.87%). Short float at 3.4%, which implies a short ratio of 1.35 days. The stock has gained 0.72% over the last year.

8. Dell Inc. (NASDAQ:DELL): Personal Computers Industry. Market cap of $25.7B. Current price at $13.31 vs. average analyst target price at $16.35 (implies a discount of -18.59%). Short float at 2.87%, which implies a short ratio of 2.1 days. The stock has gained 1.01% over the last year.

9. Activision Blizzard, Inc. (NASDAQ:ATVI): Multimedia & Graphics Software Industry. Market cap of $14.47B. Current price at $12 vs. average analyst target price at $14.68 (implies a discount of -18.26%). Short float at 5.31%, which implies a short ratio of 2.69 days. The stock has gained 12.36% over the last year.

10. Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX):
Healthcare Information Services Industry. Market cap of $3.41B. Current price at $18.25 vs. average analyst target price at $22.2 (implies a discount of -17.79%). Short float at 1.75%, which implies a short ratio of 1.43 days. The stock has lost -0.71% over the last year.

11. Lexmark International Inc. (NYSE:LXK): Computer Based Systems Industry. Market cap of $2.8B. Current price at $35.69 vs. average analyst target price at $42.75 (implies a discount of -16.51%). Short float at 7.11%, which implies a short ratio of 3.48 days. The stock has gained 38.49% over the last year.

12. Netease.com Inc. (NASDAQ:NTES): Internet Software & Services Industry. Market cap of $4.84B. Current price at $37.72 vs. average analyst target price at $44.97 (implies a discount of -16.12%). Short float at 3.21%, which implies a short ratio of 2.93 days. The stock has gained 1.89% over the last year.

13. Crown Castle International Corp. (NYSE:CCI):
Diversified Communication Services Industry. Market cap of $12.33B. Current price at $42.39 vs. average analyst target price at $50.29 (implies a discount of -15.71%). Short float at 2.42%, which implies a short ratio of 3.99 days. The stock has gained 15.38% over the last year.

14. Brasil Telecom S.A. (BTM):
Diversified Communication Services Industry. Market cap of $4.13B. Current price at $21.03 vs. average analyst target price at $24.83 (implies a discount of -15.3%). Short float at 0.44%, which implies a short ratio of 1.22 days. The stock has lost -31.79% over the last year.

15. Harris Corp. (NYSE:HRS):
Communication Equipment Industry. Market cap of $5.92B. Current price at $46.14 vs. average analyst target price at $54.4 (implies a discount of -15.18%). Short float at 3.88%, which implies a short ratio of 5.47 days. The stock has gained 3.76% over the last year.

16. Apple Inc. (NASDAQ:AAPL): Personal Computers Industry. Market cap of $293.81B. Current price at $320.29 vs. average analyst target price at $375 (implies a discount of -14.59%). Short float at 0.96%, which implies a short ratio of 0.47 days. The stock has gained 62.6% over the last year.

17. Nokia Corporation (NYSE:NOK): Communication Equipment Industry. Market cap of $37.26B. Current price at $9.95 vs. average analyst target price at $11.64 (implies a discount of -14.52%). Short float at 1.78%, which implies a short ratio of 2.66 days. The stock has lost -18.84% over the last year.

18. Microsoft Corporation (NASDAQ:MSFT): Application Software Industry. Market cap of $236.3B. Current price at $27.62 vs. average analyst target price at $32.25 (implies a discount of -14.36%). Short float at 1.01%, which implies a short ratio of 1.25 days. The stock has lost -6.37% over the last year.

19. Amdocs Ltd. (NASDAQ:DOX): Business Software & Services Industry. Market cap of $5.55B. Current price at $27.19 vs. average analyst target price at $31.53 (implies a discount of -13.76%). Short float at 1.02%, which implies a short ratio of 1.35 days. The stock has gained 0.11% over the last year.

20. American Tower Corp. (NYSE:AMT): Diversified Communication Services Industry. Market cap of $20.13B. Current price at $50.44 vs. average analyst target price at $58.31 (implies a discount of -13.5%). Short float at 1.22%, which implies a short ratio of 1.75 days. The stock has gained 23.57% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Top 20 Most Undervalued Tech Stocks by Analyst Target Price