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Price multiples, such as P/E or P/CF, can be used to compare the value of different companies’ stocks and help find undervalued opportunities. For instance, when a company has a P/E much lower than its industry average, it may indicate that the stock’s price is not fully reflecting the company’s earnings and therefore may be undervalued.

We ran a screen on small-cap stocks from the tech sector for those with lower trailing-twelve-month P/E and P/CF as well as PEG than their industry peers.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


We also created a price-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. To access a complete analysis of this list's recent performance, click here.



Do you think the market is undervaluing these companies? Use this list as a starting-off point for your own analysis.

List sorted by market cap.

1. Perficient Inc. (NASDAQ:PRFT): Business Software & Services Industry. Market cap of $252.46M. TTM P/E at 28.31 vs. industry average at 42.64. PEG at 0.75 vs. industry average at 1.33. TTM P/CF at 16.13 vs. industry average at 23.35. The stock is currently stuck in a downtrend, trading 19.9% below its SMA20, 20.91% below its SMA50, and 29.18% below its SMA200. It's been a rough couple of days for the stock, losing 14.21% over the last week.

2. China Digital TV Holding Co., Ltd. (NYSE:STV): Application Software Industry. Market cap of $251.72M. TTM P/E at 7.83 vs. industry average at 17.07. PEG at 0.4 vs. industry average at 0.84. TTM P/CF at 7.71 vs. industry average at 11.37. The stock is currently stuck in a downtrend, trading 14.99% below its SMA20, 20.45% below its SMA50, and 36.46% below its SMA200. It's been a rough couple of days for the stock, losing 10.86% over the last week.

3. Healthstream Inc. (NASDAQ:HSTM):
Internet Information Providers Industry. Market cap of $241.77M. TTM P/E at 45.54 vs. industry average at 51.2. PEG at 1.98 vs. industry average at 2.38. TTM P/CF at 23.87 vs. industry average at 26.62. After a solid performance over the last year, HSTM has pulled back during recent sessions. The stock is 21.3% below its SMA20 and 19.67% below its SMA50, but remains 14.55% above its SMA200. The stock has performed poorly over the last month, losing 20.8%.

4. Rudolph Technologies Inc. (NYSE:RTEC):
Scientific & Technical Instruments Industry. Market cap of $240.41M. TTM P/E at 7.07 vs. industry average at 14.13. PEG at 0.71 vs. industry average at 0.97. TTM P/CF at 6.5 vs. industry average at 13.22. This is a risky stock that is significantly more volatile than the overall market (beta = 2.07). The stock is currently stuck in a downtrend, trading 21.2% below its SMA20, 28.47% below its SMA50, and 27.06% below its SMA200. It's been a rough couple of days for the stock, losing 8.36% over the last week.

5. MIPS Technologies Inc. (NASDAQ:MIPS): Semiconductor Industry. Market cap of $217.52M. TTM P/E at 12.18 vs. industry average at 15.02. PEG at 0.63 vs. industry average at 1. TTM P/CF at 11.5 vs. industry average at 13.97. The stock is currently stuck in a downtrend, trading 35.59% below its SMA20, 36.78% below its SMA50, and 61.15% below its SMA200. It's been a rough couple of days for the stock, losing 39.12% over the last week.

6. NCI, Inc. (NASDAQ:NCIT): Information Technology Services Industry. Market cap of $209.58M. TTM P/E at 9.49 vs. industry average at 17.36. PEG at 0.77 vs. industry average at 1.23. TTM P/CF at 7.46 vs. industry average at 14.11. The stock is currently stuck in a downtrend, trading 32.54% below its SMA20, 35.15% below its SMA50, and 36.12% below its SMA200. It's been a rough couple of days for the stock, losing 27.97% over the last week.

7. Mindspeed Technologies Inc. (NASDAQ:MSPD):
Semiconductor Equipment & Materials Industry. Market cap of $198.60M. TTM P/E at 14.12 vs. industry average at 15.02. PEG at 0.81 vs. industry average at 1. TTM P/CF at 8.74 vs. industry average at 13.97. This is a risky stock that is significantly more volatile than the overall market (beta = 2.31). The stock is currently stuck in a downtrend, trading 17.39% below its SMA20, 23.86% below its SMA50, and 23.88% below its SMA200. It's been a rough couple of days for the stock, losing 7.78% over the last week.

*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: 7 Small-Cap Tech Stocks Undervalued by Earnings, Cash Flow, And Earnings Growth