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When a stock is more profitable than its industry peers while also appearing undervalued to them on several measures, it warrants a closer look.

Here we present 4 stocks from the tech sector that meet those requirements.

We searched for tech stocks that have higher TTM gross, operating, and pretax margins than their industry peers. Among that list of profitable tech stocks, we then searched for those that were undervalued relative to their industry by TTM P/E, PEG, and TTM P/CF. The final list of 4 is below.



Do you think these companies have the projects to continue their profitability? Use this list as a starting-off point for your own analysis.
List sorted by market cap.

We also created an equal weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. As the chart shows, these stocks have, as a group, outperformed the S&P 500 over the last month. To access a complete analysis of this list's recent performance, click here.



1. Intel Corporation (NASDAQ:INTC): Semiconductor Industry. Market cap of $125.10B. TTM P/E at 10.66 vs. industry avg. at 19.32. PEG ratio at 0.91 vs. industry avg. at 1.02. TTM P/CF at 7.52 vs. industry avg. at 13.48. TTM gross margin at 75.24% vs. industry avg. at 58.47%. TTM operating margin at 35.34% vs. industry avg. at 24.79%. TTM pretax margin at 36.73% vs. industry avg. at 24.33%. The stock offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.12%, current ratio at 1.97, and quick ratio at 1.62. INTC is exhibiting strong upside momentum--currently trading 11.85% above its SMA20, 12.8% above its SMA50, and 15.55% above its SMA200. The stock has had a good month, gaining 17.8%.

2. Cisco Systems, Inc. (NASDAQ:CSCO): Networking & Communication Devices Industry. Market cap of $96.24B. TTM P/E at 13.29 vs. industry avg. at 25.41. PEG ratio at 1.28 vs. industry avg. at 1.48. TTM P/CF at 9.88 vs. industry avg. at 21.23. TTM gross margin at 66.58% vs. industry avg. at 56.39%. TTM operating margin at 20.61% vs. industry avg. at 15.30%. TTM pretax margin at 21.19% vs. industry avg. at 16.26%. The stock has lost 34.23% over the last year.

3. SanDisk Corp. (NASDAQ:SNDK):
Semiconductor Industry. Market cap of $11.31B. TTM P/E at 8.87 vs. industry avg. at 18.7. PEG ratio at 0.71 vs. industry avg. at 1.41. TTM P/CF at 7.78 vs. industry avg. at 13.41. TTM gross margin at 49.13% vs. industry avg. at 40.06%. TTM operating margin at 30.09% vs. industry avg. at 20.50%. TTM pretax margin at 29.12% vs. industry avg. at 20.09%. It's been a rough couple of days for the stock, losing 5.82% over the last week.

4. Marvell Technology Group Ltd. (NASDAQ:MRVL):
Semiconductor Industry. Market cap of $9.50B. TTM P/E at 11.19 vs. industry avg. at 19.32. PEG ratio at 0.83 vs. industry avg. at 1.02. TTM P/CF at 9.07 vs. industry avg. at 13.48. TTM gross margin at 62.02% vs. industry avg. at 58.45%. TTM operating margin at 25.27% vs. industry avg. at 24.79%. TTM pretax margin at 25.21% vs. industry avg. at 24.33%.

*Profitability data and price multiples sourced from Fidelity, all other data sourced from Finviz.

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

Source: Top 4 Most Profitable and Undervalued Tech Stocks