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

Looking for potentially undervalued stocks? For ideas on how to start your search, we ran a stock screen you may be interested in.

We began by screening the tech sector for stocks with high growth, measured by 5-year projected EPS growth above 20%. We then screened these stocks for those that appear undervalued relative to EPS trends.

Based on the theoretical assumption that if 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 mispricing may have occurred. We screened for those exhibiting this mismatch between changes in EPS estimate and price.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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 these stocks are undervalued? Use this list as a starting point for your own analysis.

List sorted by 5-year projected EPS growth rate.

1. TeleNav, Inc. (NASDAQ:TNAV): Provides location based services for consumers and enterprises in the United States and internationally. 5-year projected EPS growth rate at 26.84%. The EPS estimate for the company's current year increased from 0.66 to 0.68 over the last 30 days, an increase of 3.03%. This increase came during a time when the stock price changed by 1.98% (from 7.59 to 7.74 over the last 30 days).

2. Tessera Technologies Inc. (NASDAQ:TSRA): Develops and licenses miniaturization technologies for chip-scale, multichip, and wafer-level packaging, which enables companies to produce chips for digital audio players, digital cameras, personal computers, personal digital assistants, video game consoles, and mobile phones. 5-year projected EPS growth rate at 25.00%. The EPS estimate for the company's current year increased from 0.76 to 0.87 over the last 30 days, an increase of 14.47%. This increase came during a time when the stock price changed by 9.66% (from 18.02 to 19.76 over the last 30 days).

3. Portugal Telecom SGPS SA (NYSE:PT): Provides telecommunications services in Portugal, Brazil, and Africa. 5-year projected EPS growth rate at 23.70%. The EPS estimate for the company's current year increased from 0.86 to 0.88 over the last 30 days, an increase of 2.33%. This increase came during a time when the stock price changed by -1.99% (from 5.54 to 5.43 over the last 30 days).

4. Seagate Technology PLC (NASDAQ:STX): Designs, manufactures, markets, and sells hard disk drives for the enterprise, client compute, and client non-compute market applications in the United States and internationally. 5-year projected EPS growth rate at 20.63%. The EPS estimate for the company's current year increased from 3.56 to 6.15 over the last 30 days, an increase of 72.75%. This increase came during a time when the stock price changed by 43.65% (from 18.19 to 26.13 over the last 30 days).

*EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 4 High Growth Tech Stocks Undervalued By EPS Trends