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If you're interested in the growth opportunities that the tech sector can offer, here are some ideas to start your stock search.

We ran a screen on the tech sector for stocks that appear undervalued relative to earnings growth, with PEG below 1. We then screened for those with impressive profitability, with higher gross, operating, and pretax margins 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 these companies are poised to outperform? Use this list as a starting point for your own analysis.

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. PEG at 0.75. TTM gross margin at 44.12% vs. industry average at 42.67%. TTM operating margin at 33.87% vs. industry average at 25.29%. TTM pretax margin at 34.2% vs. industry average at 25.3%.

2. Bally Technologies, Inc. (NYSE:BYI): Designs, manufactures, operates, and distributes advanced technology-based gaming devices, systems, and server-based solutions worldwide. PEG at 0.99. TTM gross margin at 70.33% vs. industry average at 35.56%. TTM operating margin at 20.03% vs. industry average at 18.77%. TTM pretax margin at 18.16% vs. industry average at 17.91%.

3. Cellcom Israel Ltd. (NYSE:CEL): Provides cellular communications services in Israel. PEG at 0.58. TTM gross margin at 60.75% vs. industry average at 60.58%. TTM operating margin at 26.56% vs. industry average at 21.37%. TTM pretax margin at 21.27% vs. industry average at 16.63%.

4. DG FastChannel, Inc. (NASDAQ:DGIT): Provides digital technology services that enable the electronic delivery of advertisements, syndicated programs, and video news releases to traditional broadcasters, online publishers, and other media outlets. PEG at 0.58. TTM gross margin at 66.98% vs. industry average at 42.45%. TTM operating margin at 28.99% vs. industry average at 19.01%. TTM pretax margin at 19.95% vs. industry average at 15.11%.

5. Iridium Communications Inc. (NASDAQ:IRDM): Provides mobile voice and data communications services through satellites to businesses. PEG at 0.79. TTM gross margin at 67.94% vs. industry average at 48.81%. TTM operating margin at 20.22% vs. industry average at 12.84%. TTM pretax margin at 17.02% vs. industry average at 9.77%.

6. Medidata Solutions, Inc. (NASDAQ:MDSO): Provides software-as-a-service based clinical development solutions for life science organizations worldwide. PEG at 0.84. TTM gross margin at 74.5% vs. industry average at 45.84%. TTM operating margin at 14.37% vs. industry average at 13.96%. TTM pretax margin at 18.03% vs. industry average at 11.75%.

7. Mercury Computer Systems, Inc. (NASDAQ:MRCY): Designs, manufactures, and markets high-performance embedded, real-time digital signal and image processing systems and software for embedded, and other specialized commercial and defense computing markets. PEG at 0.97. TTM gross margin at 61.12% vs. industry average at 35.81%. TTM operating margin at 13.07% vs. industry average at 9.67%. TTM pretax margin at 13.34% vs. industry average at 9.89%.

8. Maxim Integrated Products Inc. (NASDAQ:MXIM): Designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits worldwide. PEG at 0.98. TTM gross margin at 68.95% vs. industry average at 59.96%. TTM operating margin at 25.87% vs. industry average at 23.91%. TTM pretax margin at 25.34% vs. industry average at 22.87%.

9. OYO Geospace Corp. (OYOG): Engages in designing and manufacturing instruments and equipments used in the acquisition and processing of seismic data; and in the characterization and monitoring of producing oil and gas reservoirs. PEG at 0.62. TTM gross margin at 47.97% vs. industry average at 35.25%. TTM operating margin at 26.12% vs. industry average at 18.22%. TTM pretax margin at 26.34% vs. industry average at 16.17%.

10. Rofin-Sinar Technologies Inc. (NASDAQ:RSTI): Designs, develops, engineers, makes, and markets industrial lasers and supplies used for material-processing applications worldwide. PEG at 0.62. TTM gross margin at 38.87% vs. industry average at 35.81%. TTM operating margin at 12.37% vs. industry average at 9.67%. TTM pretax margin at 12.99% vs. industry average at 9.89%.

11. SanDisk Corp. (NASDAQ:SNDK): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. PEG at 0.71. TTM gross margin at 46.25% vs. industry average at 42.67%. TTM operating margin at 27.49% vs. industry average at 25.29%. TTM pretax margin at 26.08% vs. industry average at 25.3%.

12. Zygo Corp. (NASDAQ:ZIGO): Designs, develops, and manufactures ultra-high precision measurement solutions to enhance its customers' manufacturing yields; and optical sub-systems and components for original equipment manufacturers and end-user applications in the United States and internationally. PEG at 0.83. TTM gross margin at 51.36% vs. industry average at 35.81%. TTM operating margin at 17.1% vs. industry average at 9.67%. TTM pretax margin at 16.32% vs. industry average at 9.89%.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Source: 12 Undervalued Tech Stocks With High Profitability