6 Rallying Tech Stocks Undervalued By Target Price

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 |  Includes: ELNK, GLUU, ISSI, PACT, RDA, VNET
by: Kapitall

Interested in the high growth prospects of the tech sector? For a closer look at some potentially undervalued tech names, we ran a screen.

We began by screening the tech sector for stocks with strong positive market sentiment, rallying above their 20-day, 50-day, and 200-day moving averages.

We then screened for those that still appear undervalued relative to analyst target price, which we use as a proxy for fair value. Since target prices are known to suffer from upward biases, we only used the lowest, most pessimistic analyst target price. For stocks with sufficient analyst coverage, we also only considered stocks with at least 5 analyst target prices.

Interactive Chart: Press Play to compare changes in market cap 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 stocks are being undervalued by the market? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by the lowest analyst target price.

1. EarthLink Inc. (NASDAQ:ELNK): Provides communications services to individual and business customers in the United States. Market cap at $889.87M, most recent closing price at $8.31. The stock is currently trading 6.13% above its 20-day moving average, 7.76% above its 50-day MA, and 18.06% above its 200-day MA. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $10.00. This implies a current upside of 22.70% from current levels around $8.15.

2. Glu Mobile, Inc. (NASDAQ:GLUU): Engages in the design, marketing, and sale of casual and traditional mobile games worldwide. Market cap at $295.22M, most recent closing price at $4.82. The stock is currently trading 5.02% above its 20-day moving average, 8.85% above its 50-day MA, and 30.99% above its 200-day MA. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $6.00. This implies a current upside of 32.74% from current levels around $4.52.

3. hiSoft Technology International Ltd. (HSFT): Provides outsourced information technology and research and development services in North America, Europe, and Asia. Market cap at $464.76M, most recent closing price at $14.75. The stock is currently trading 3.68% above its 20-day moving average, 2.33% above its 50-day MA, and 24.98% above its 200-day MA. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $17.00. This implies a current upside of 21.26% from current levels around $14.02.

4. Integrated Silicon Solution Inc. (NASDAQ:ISSI): Designs and markets integrated circuits for digital consumer electronics, networking and telecommunications, mobile communications, automotive electronics, and industrial markets. Market cap at $294.74M, most recent closing price at $10.90. The stock is currently trading 2.00% above its 20-day moving average, 0.76% above its 50-day MA, and 15.66% above its 200-day MA. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $13.00. This implies a current upside of 24.40% from current levels around $10.45.

5. RDA Microelectronics, Inc. (NASDAQ:RDA): Designs, develops, and markets radio-frequency and mixed-signal semiconductors for cellular, broadcast, and connectivity applications. Market cap at $531.6M, most recent closing price at $12.55. The stock is currently trading 1.08% above its 20-day moving average, 5.23% above its 50-day MA, and 17.28% above its 200-day MA. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $15.00. This implies a current upside of 21.07% from current levels around $12.39.

6. 21Vianet Group, Inc. (NASDAQ:VNET): Provides carrier-neutral Internet data center services in China. Market cap at $718.27M, most recent closing price at $12.51. The stock is currently trading 9.73% above its 20-day moving average, 11.15% above its 50-day MA, and 19.95% above its 200-day MA. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $15.00. This implies a current upside of 18.11% from current levels around $12.70.

*Target price data sourced from Thomson/First Call (via Yahoo! Finance), 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.