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Quite the challenging day in the markets today as the European situation continues to get worse and equities give up their gains for the week. Spain's 10-year debt yields passed 7 1/4% today as it appears Valencia, one of Spain's biggest regions, will seek a bailout from the federal government. We could have an ugly close as I think some investors will not want to be long going into the weekend. One stock I am looking to pick up if the market continues to fall is a fast-growing tech services firm, iGATE Corp. (NASDAQ:IGTE), that is offering a good entry point given its growth prospects.

According to the business description from Yahoo Finance, "iGATE Corporation provides outsourced information technology and IT-enabled operations solutions and services worldwide."

Here are eight reasons why IGTE is a solid buy at under $16 a share:

  1. The stock sells at just over nine times forward earnings, a discount to its five-year average (15.9).
  2. Two beneficial owners (Apax and Viscaria) have purchased approximately $60 million in shares in May.
  3. The company has grown EPS at an average annual clip of 19% over the past five years.
  4. The six analysts who cover IGTE have price targets ranging from $18 to $22 on the stock with a median price target of $22.
  5. Earnings are expected to ramp up sharply. The company earned 89 cents a share in FY 2011, and analysts have it earning $1.42 a share in FY 2012 and $1.73 in FY 2013.
  6. Revenues are expected to climb 40% this year and around 10% in FY 2013. It has a small projected five-year PEG of 0.60.
  7. The company almost doubled operating cash flow from FY 2009 to FY 2011 and the stock sells for 10 times trailing OCF.
  8. The stock looks as if it is building a technical base at these levels (see chart below).

Click to enlarge image.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in IGTE over the next 72 hours.

Source: 8 Reasons To Consider This Fast-Growing Tech Firm In Today's Downturn