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Here we offer an interesting way to find potentially undervalued opportunities. Under the theoretical assumption that P/E is equal to a constant K, growth in EPS estimates should be matched by proportionate growth in price. When they don’t match up, a mis-pricing may have occurred.

We used this idea to screen for potentially undervalued stocks among mega-cap tech stocks The screen produced 11 stocks, all listed below.

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.


Although there is no reason to expect that P/E remains constant, this is merely a theoretical assumption for the purpose of giving you a starting point for your own analysis.

Do you think these mega-cap tech names are undervalued? Leave your comments below…

1. Apple Inc. (NASDAQ:AAPL): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $347.29B. The EPS estimate for the company's current year increased from 27.41 to 27.64 over the last 30 days, an increase of 0.84%. This increase came during a time when the stock price changed by -0.18% (from 379.74 to 379.04 over the last 30 days).

2. Google Inc. (NASDAQ:GOOG):
Google is the world's most popular search engine. Market cap at $160.B. The EPS estimate for the company's current year increased from 35.45 to 35.49 over the last 30 days, an increase of 0.11%. This increase came during a time when the stock price changed by -4.37% (from 522.18 to 499.34 over the last 30 days).

3. Nippon Telegraph & Telephone Corp. (NYSE:NTT):
Provides telecommunications services to residential and business customers in Japan. Market cap at $69.88B. The EPS estimate for the company's current year increased from 2.44 to 2.89 over the last 30 days, an increase of 18.44%. This increase came during a time when the stock price changed by 4.44% (from 23.22 to 24.25 over the last 30 days).

4. SAP AG (NYSE:SAP): Provides business software primarily in Europe, the Middle East, Africa, the Americas, and the Asia Pacific Japan region. Market cap at $59.41B. The EPS estimate for the company's current year increased from 2.65 to 2.73 over the last 30 days, an increase of 3.02%. This increase came during a time when the stock price changed by -3.3% (from 50.9 to 49.22 over the last 30 days).

5. China Telecom Corp. Ltd. (NYSE:CHA):
Provides wireline and mobile telecommunications services in the People's Republic of China. Market cap at $49.34B. The EPS estimate for the company's current year increased from 3.43 to 3.58 over the last 30 days, an increase of 4.37%. This increase came during a time when the stock price changed by -5.28% (from 65.13 to 61.69 over the last 30 days).

6. China Unicom (Hong Kong) Limited (NYSE:CHU): Engages in the provision of GSM and WCDMA cellular, and related telecommunications services in the People's Republic of China. Market cap at $45.62B. The EPS estimate for the company's current year increased from 0.34 to 0.39 over the last 30 days, an increase of 14.71%. This increase came during a time when the stock price changed by -7.63% (from 21.23 to 19.61 over the last 30 days).

7. Rogers Communications Inc. (NYSE:RCI):
Operates as a communications and media company in Canada. Market cap at $18.26B. The EPS estimate for the company's current year increased from 3.13 to 3.14 over the last 30 days, an increase of 0.32%. This increase came during a time when the stock price changed by -8.64% (from 37.71 to 34.45 over the last 30 days).

8. Kyocera Corp. (NYSE:KYO):
Develops, produces, and distributes ceramic, semiconductor, and electronic products for the information and communications markets, and environment and energy markets worldwide. Market cap at $15.42B. The EPS estimate for the company's current year increased from 6.87 to 7.02 over the last 30 days, an increase of 2.18%. This increase came during a time when the stock price changed by -5.43% (from 87.35 to 82.61 over the last 30 days).

9. TELUS Corporation (NYSE:TU):
Provides telecommunications products and services primarily in Canada. Market cap at $14.79B. The EPS estimate for the company's current year increased from 3.77 to 3.79 over the last 30 days, an increase of 0.53%. This increase came during a time when the stock price changed by -11.27% (from 51.62 to 45.8 over the last 30 days).

10. Adobe Systems Inc. (NASDAQ:ADBE):
Operates as a diversified software company in the Americas, Europe, the Middle East, Africa, and Asia. Market cap at $11.49B. The EPS estimate for the company's current year increased from 2.26 to 2.28 over the last 30 days, an increase of 0.88%. This increase came during a time when the stock price changed by -0.25% (from 23.74 to 23.68 over the last 30 days).

11. Agilent Technologies Inc. (NYSE:A):
Provides bio-analytical and electronic measurement solutions to the communications, electronics, life sciences, and chemical analysis industries in the United States and internationally. Market cap at $10.21B. The EPS estimate for the company's current year increased from 2.88 to 2.91 over the last 30 days, an increase of 1.04%. This increase came during a time when the stock price changed by -11.26% (from 33.92 to 30.1 over the last 30 days).

*Data sourced from Yahoo! Finance.

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

Source: 11 Potentially Mis-Priced Mega Cap Tech Stocks