Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

If you're interested in undervalued tech stocks, the following list might offer an interesting starting point.

All of these tech stocks have Price to Earnings Growth (PEG) ratios below 1, which usually signals undervalued conditions.

Additionally, all of these stocks have a large number of open call option positions relative to put option positions, indicating that options traders expect these stocks to rally in the near term. In other words, all of the stocks mentioned below have low Put/Call ratios.

Do you think the bullish sentiment is going to continue for these names? Full details below.

Options data sourced from Schaeffer's, PEG and all other data sourced from Finviz.

List sorted by Put/Call ratio. Note: All data collected on Friday afternoon.

1. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM): Semiconductor Industry. Market cap of $63.52B. PEG at 0.82.

Put/Call ratio at 0.12 (put open interest at 711 contracts vs. call open interest at 6,174 contracts).

The stock offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.8%, current ratio at 2.26, and quick ratio at 2.01. After a solid performance over the last year, TSM has pulled back during recent sessions. The stock is 2.68% below its SMA20 and 3.56% below its SMA50, but remains 14.15% above its SMA200.

2. Atmel Corporation (NASDAQ:ATML): Semiconductor Industry. Market cap of $6.69B. PEG at 0.88. The stock has gained 189.48% over the last year.

Put/Call ratio at 0.14 (put open interest at 9,859 contracts vs. call open interest at 68,728 contracts).

3. China Digital TV Holding Co., Ltd. (NYSE:STV): Application Software Industry. Market cap of $387.30M. PEG at 0.87. The stock has lost 11.57% over the last year.

Put/Call ratio at 0.17 (put open interest at 310 contracts vs. call open interest at 1,787 contracts).

4. Neutral Tandem, Inc. (NASDAQ:TNDM): Wireless Communications Industry. Market cap of $575.29M. PEG at 0.92.

Put/Call ratio at 0.17 (put open interest at 1,840 contracts vs. call open interest at 10,580 contracts).

TNDM also appears undervalued relative to free cash flow, with P/FCF ratio at 14.48. The stock is also a short squeeze candidate, with a short float at 8.53% (equivalent to 7.25 days of average volume).

5. Lattice Semiconductor Corporation (NASDAQ:LSCC): Semiconductor Industry. Market cap of $806.03M. PEG at 0.71.

Put/Call ratio at 0.18 (put open interest at 190 contracts vs. call open interest at 1,052 contracts).

It has been exhibiting strong upside momentum--currently trading 9.13% above its SMA20, 15.21% above its SMA50, and 37.81% above its SMA200. The stock has also had a couple of great days, gaining 8.4% over the last week.

6. Novell Inc. (NASDAQ:NOVL): Security Software & Services Industry. Market cap of $2.05B. PEG at 0.78. The stock has lost 3.16% over the last year.

Put/Call ratio at 0.20 (put open interest at 958 contracts vs. call open interest at 4,724 contracts).

7. Oplink Communications Inc. (NASDAQ:OPLK): Semiconductor Industry. Market cap of $542.42M. PEG at 0.94. The stock has had a good month, gaining 12.57%.

Put/Call ratio at 0.35 (put open interest at 1,401 contracts vs. call open interest at 4,055 contracts).

8. TTM Technologies Inc. (NASDAQ:TTMI): Printed Circuit Boards Industry. Market cap of $1.46B. PEG at 0.97. The stock has gained 7.31% over the last week.

Put/Call ratio at 0.36 (put open interest at 958 contracts vs. call open interest at 2,688 contracts).

The stock is a short squeeze candidate, with a short float at 7.34% (equivalent to 5.37 days of average volume).

9. Shanda Games Limited (NASDAQ:GAME): Multimedia & Graphics Software Industry. Market cap of $1.91B. PEG at 0.82. The stock has had a couple of great days, gaining 16.34% over the last week.

Put/Call ratio at 0.41 (put open interest at 2,701 contracts vs. call open interest at 6,571 contracts).

10. Telecom Argentina S A (NYSE:TEO): Diversified Communication Services Industry. Market cap of $4.72B. PEG at 0.87. The stock has gained 53.16% over the last year.

Put/Call ratio at 0.43 (put open interest at 143 contracts vs. call open interest at 335 contracts).

TEO also appears to be undervalued relative to free cash flow, with P/FCF ratio at 10.71.

11. Cirrus Logic Inc. (NASDAQ:CRUS): Semiconductor Industry. Market cap of $1.69B. PEG at 0.95. The stock has had a couple of great days, gaining 9.61% over the last week.

Put/Call ratio at 0.44 (put open interest at 19,887 contracts vs. call open interest at 45,110 contracts).

It has a relatively low correlation to the market (beta = 0.67), which may be appealing to risk-averse investors.

Source: 11 Undervalued Tech Stocks With Bullish Options Sentiment