Investing 101: Rallying Tech Stocks Undervalued by EPS Trends
Investing 101: Rallying Tech Stocks Undervalued by EPS Trends
Looking for stocks that are rallying, but not as quickly as their earnings? This could be a sign that the stock is currently undervalued, but that it might be on its way up.?
Rallying
When a stock is rallying it means it is performing above its moving average for a given time period. It is presented as a percent of performance relative to the average. When a stock is trading above its 20-day moving average (MA) as well as its 50 and 200 day moving averages, it signals bullish momentum. All the stocks in this list are rallying above their 20, 50, and 200-day MA.
EPS/Price Mismatch
Earnings Per Share (EPS) is the amount of profit that is allotted to each share of a company after dividends have been paid out. Higher EPS and faster EPS growth are both positive signs of profitability.EPS = (Net Income - Dividends)/(Outstanding Shares)
Price-to-EPS is one of the most widely used financial ratios. Although P/E values are not constant over time, if EPS is rising faster than price, then the P/E ratio is falling, which could be a sign that the stock is undervalued.?
Business Section
To illustrate these ideas, we ran a screen for tech stocks that were trading above all three moving averages. We also screened for those with the highest EPS/Price mismatch.
Do you think these stock prices will catch up with their earnings?
List is sorted by market cap.
1. Apple Inc. (AAPL, Earnings, Analysts, Financials): 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. The stock is currently trading at 11.88% above its 20-day SMA, 19.82% above its 50-day SMA, and 31.36% above its 200-day SMA. The EPS estimate for the company's current year increased from 34.93 to 42.34 over the last 30 days, an increase of 21.21%. This increase came during a time when the stock price changed by 16.94% (from 422.55 to 494.12 over the last 30 days).
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2. ASML Holding NV (ASML, Earnings, Analysts, Financials): Engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. The stock is currently trading at 2.90% above its 20-day SMA, 7.04% above its 50-day SMA, and 16.93% above its 200-day SMA. The EPS estimate for the company's current year increased from 2.87 to 3.42 over the last 30 days, an increase of 19.16%. This increase came during a time when the stock price changed by 8.56% (from 41.84 to 45.42 over the last 30 days).
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3. Roper Industries Inc. (ROP, Earnings, Analysts, Financials): Designs, manufactures, and distributes medical and scientific imaging products and software, energy systems and controls, and industrial technology products and radio frequency (RF) products and services. The stock is currently trading at 0.11% above its 20-day SMA, 5.43% above its 50-day SMA, and 16.17% above its 200-day SMA. The EPS estimate for the company's current year increased from 4.72 to 4.78 over the last 30 days, an increase of 1.27%. This increase came during a time when the stock price changed by 0.55% (from 92.06 to 92.57 over the last 30 days).
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4. NetLogic Microsystems Inc. (NETL, Earnings, Analysts, Financials): Engages in the design, development, and sale of processors and integrated circuits. The stock is currently trading at 0.06% above its 20-day SMA, 0.36% above its 50-day SMA, and 16.25% above its 200-day SMA. The EPS estimate for the company's current year increased from 1.64 to 1.66 over the last 30 days, an increase of 1.22%. This increase came during a time when the stock price changed by 0.02% (from 49.74 to 49.75 over the last 30 days).
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5. Teradyne Inc. (TER, Earnings, Analysts, Financials): Provides automatic test equipment products and services worldwide. The stock is currently trading at 0.96% above its 20-day SMA, 11.48% above its 50-day SMA, and 19.06% above its 200-day SMA. The EPS estimate for the company's current year increased from 1.23 to 1.49 over the last 30 days, an increase of 21.14%. This increase came during a time when the stock price changed by 9.33% (from 15.11 to 16.52 over the last 30 days).
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6. Acuity Brands, Inc. (AYI, Earnings, Analysts, Financials): Engages in the design, production, and distribution of lighting fixtures, lighting controls, and related products and services in North America and internationally. The stock is currently trading at 3.61% above its 20-day SMA, 11.72% above its 50-day SMA, and 21.59% above its 200-day SMA. The EPS estimate for the company's current year increased from 3 to 3.1 over the last 30 days, an increase of 3.33%. This increase came during a time when the stock price changed by 2.93% (from 58.27 to 59.98 over the last 30 days).
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7. AOL, Inc. (AOL, Earnings, Analysts, Financials): Operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. The stock is currently trading at 11.13% above its 20-day SMA, 19.15% above its 50-day SMA, and 14.24% above its 200-day SMA. The EPS estimate for the company's current year increased from 0.37 to 0.47 over the last 30 days, an increase of 27.03%. This increase came during a time when the stock price changed by 14.3% (from 16.22 to 18.54 over the last 30 days).
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8. FEI Co. (FEIC, Earnings, Analysts, Financials): Supplies instruments for nanoscale imaging, analysis, and prototyping that enable research, development, and manufacturing in industrial, academic, and research institutional applications. The stock is currently trading at 0.41% above its 20-day SMA, 6.09% above its 50-day SMA, and 22.53% above its 200-day SMA. The EPS estimate for the company's current year increased from 2.65 to 2.69 over the last 30 days, an increase of 1.51%. This increase came during a time when the stock price changed by 0.75% (from 43.91 to 44.24 over the last 30 days).
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9. Plantronics, Inc. (PLT, Earnings, Analysts, Financials): Engages in the design, manufacture, and marketing of lightweight communications headsets, telephone headset systems, and accessories for the business and consumer markets under the Plantronics brand name worldwide. The stock is currently trading at 0.07% above its 20-day SMA, 4.43% above its 50-day SMA, and 10.28% above its 200-day SMA. The EPS estimate for the company's current year increased from 2.64 to 2.74 over the last 30 days, an increase of 3.79%. This increase came during a time when the stock price changed by 2.99% (from 36.16 to 37.24 over the last 30 days).
?
10. Tessera Technologies Inc. (TSRA, Earnings, Analysts, Financials): 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. The stock is currently trading at 0.14% above its 20-day SMA, 7.77% above its 50-day SMA, and 20.40% above its 200-day SMA. 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 4.65% (from 18.07 to 18.91 over the last 30 days).
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(Written by Danny Guttridge. EPS data sourced from Yahoo! Finance.)
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Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data...
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Analyze These Ideas: Getting Started
Read descriptions for all companies mentioned
Access a performance overview for all stocks in the list
Compare analyst ratings for the companies mentioned
Compare analyst ratings to annual returns for stocks mentioned
Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
Apple Inc. (AAPL, Chart, Download SEC Filings)
ASML Holding NV (ASML, Chart, Download SEC Filings)
Roper Industries Inc. (ROP, Chart, Download SEC Filings)
NetLogic Microsystems Inc. (NETL, Chart, Download SEC Filings)
Teradyne Inc. (TER, Chart, Download SEC Filings)
Acuity Brands, Inc. (AYI, Chart, Download SEC Filings)
AOL, Inc. (AOL, Chart, Download SEC Filings)
FEI Co. (FEIC, Chart, Download SEC Filings)
Plantronics, Inc. (PLT, Chart, Download SEC Filings)
Tessera Technologies Inc. (TSRA, Chart, Download SEC Filings)
New to Kapitall?1. New to the site? Click here to register for a free account, and gain access to more tools and data2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter
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Articles
Investing 101: Rallying Tech Stocks Undervalued by EPS Trends
Looking for stocks that are rallying, but not as quickly as their earnings? This could be a sign that the stock is currently undervalued, but that it might be on its way up.?
Rallying
When a stock is rallying it means it is performing above its moving average for a given time period. It is presented as a percent of performance relative to the average. When a stock is trading above its 20-day moving average (MA) as well as its 50 and 200 day moving averages, it signals bullish momentum. All the stocks in this list are rallying above their 20, 50, and 200-day MA.
EPS/Price Mismatch
Earnings Per Share (EPS) is the amount of profit that is allotted to each share of a company after dividends have been paid out. Higher EPS and faster EPS growth are both positive signs of profitability.EPS = (Net Income - Dividends)/(Outstanding Shares)
Price-to-EPS is one of the most widely used financial ratios. Although P/E values are not constant over time, if EPS is rising faster than price, then the P/E ratio is falling, which could be a sign that the stock is undervalued.?
Business Section
To illustrate these ideas, we ran a screen for tech stocks that were trading above all three moving averages. We also screened for those with the highest EPS/Price mismatch.
Do you think these stock prices will catch up with their earnings?
List is sorted by market cap.
1. Apple Inc. (AAPL, Earnings, Analysts, Financials): 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. The stock is currently trading at 11.88% above its 20-day SMA, 19.82% above its 50-day SMA, and 31.36% above its 200-day SMA. The EPS estimate for the company's current year increased from 34.93 to 42.34 over the last 30 days, an increase of 21.21%. This increase came during a time when the stock price changed by 16.94% (from 422.55 to 494.12 over the last 30 days).
?
2. ASML Holding NV (ASML, Earnings, Analysts, Financials): Engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. The stock is currently trading at 2.90% above its 20-day SMA, 7.04% above its 50-day SMA, and 16.93% above its 200-day SMA. The EPS estimate for the company's current year increased from 2.87 to 3.42 over the last 30 days, an increase of 19.16%. This increase came during a time when the stock price changed by 8.56% (from 41.84 to 45.42 over the last 30 days).
?
3. Roper Industries Inc. (ROP, Earnings, Analysts, Financials): Designs, manufactures, and distributes medical and scientific imaging products and software, energy systems and controls, and industrial technology products and radio frequency (RF) products and services. The stock is currently trading at 0.11% above its 20-day SMA, 5.43% above its 50-day SMA, and 16.17% above its 200-day SMA. The EPS estimate for the company's current year increased from 4.72 to 4.78 over the last 30 days, an increase of 1.27%. This increase came during a time when the stock price changed by 0.55% (from 92.06 to 92.57 over the last 30 days).
?
4. NetLogic Microsystems Inc. (NETL, Earnings, Analysts, Financials): Engages in the design, development, and sale of processors and integrated circuits. The stock is currently trading at 0.06% above its 20-day SMA, 0.36% above its 50-day SMA, and 16.25% above its 200-day SMA. The EPS estimate for the company's current year increased from 1.64 to 1.66 over the last 30 days, an increase of 1.22%. This increase came during a time when the stock price changed by 0.02% (from 49.74 to 49.75 over the last 30 days).
?
5. Teradyne Inc. (TER, Earnings, Analysts, Financials): Provides automatic test equipment products and services worldwide. The stock is currently trading at 0.96% above its 20-day SMA, 11.48% above its 50-day SMA, and 19.06% above its 200-day SMA. The EPS estimate for the company's current year increased from 1.23 to 1.49 over the last 30 days, an increase of 21.14%. This increase came during a time when the stock price changed by 9.33% (from 15.11 to 16.52 over the last 30 days).
?
6. Acuity Brands, Inc. (AYI, Earnings, Analysts, Financials): Engages in the design, production, and distribution of lighting fixtures, lighting controls, and related products and services in North America and internationally. The stock is currently trading at 3.61% above its 20-day SMA, 11.72% above its 50-day SMA, and 21.59% above its 200-day SMA. The EPS estimate for the company's current year increased from 3 to 3.1 over the last 30 days, an increase of 3.33%. This increase came during a time when the stock price changed by 2.93% (from 58.27 to 59.98 over the last 30 days).
?
7. AOL, Inc. (AOL, Earnings, Analysts, Financials): Operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. The stock is currently trading at 11.13% above its 20-day SMA, 19.15% above its 50-day SMA, and 14.24% above its 200-day SMA. The EPS estimate for the company's current year increased from 0.37 to 0.47 over the last 30 days, an increase of 27.03%. This increase came during a time when the stock price changed by 14.3% (from 16.22 to 18.54 over the last 30 days).
?
8. FEI Co. (FEIC, Earnings, Analysts, Financials): Supplies instruments for nanoscale imaging, analysis, and prototyping that enable research, development, and manufacturing in industrial, academic, and research institutional applications. The stock is currently trading at 0.41% above its 20-day SMA, 6.09% above its 50-day SMA, and 22.53% above its 200-day SMA. The EPS estimate for the company's current year increased from 2.65 to 2.69 over the last 30 days, an increase of 1.51%. This increase came during a time when the stock price changed by 0.75% (from 43.91 to 44.24 over the last 30 days).
?
9. Plantronics, Inc. (PLT, Earnings, Analysts, Financials): Engages in the design, manufacture, and marketing of lightweight communications headsets, telephone headset systems, and accessories for the business and consumer markets under the Plantronics brand name worldwide. The stock is currently trading at 0.07% above its 20-day SMA, 4.43% above its 50-day SMA, and 10.28% above its 200-day SMA. The EPS estimate for the company's current year increased from 2.64 to 2.74 over the last 30 days, an increase of 3.79%. This increase came during a time when the stock price changed by 2.99% (from 36.16 to 37.24 over the last 30 days).
?
10. Tessera Technologies Inc. (TSRA, Earnings, Analysts, Financials): 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. The stock is currently trading at 0.14% above its 20-day SMA, 7.77% above its 50-day SMA, and 20.40% above its 200-day SMA. 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 4.65% (from 18.07 to 18.91 over the last 30 days).
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(Written by Danny Guttridge. EPS data sourced from Yahoo! Finance.)
?
?
Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data...
?
Analyze These Ideas: Getting Started
Read descriptions for all companies mentioned
Access a performance overview for all stocks in the list
Compare analyst ratings for the companies mentioned
Compare analyst ratings to annual returns for stocks mentioned
Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
Apple Inc. (AAPL, Chart, Download SEC Filings)
ASML Holding NV (ASML, Chart, Download SEC Filings)
Roper Industries Inc. (ROP, Chart, Download SEC Filings)
NetLogic Microsystems Inc. (NETL, Chart, Download SEC Filings)
Teradyne Inc. (TER, Chart, Download SEC Filings)
Acuity Brands, Inc. (AYI, Chart, Download SEC Filings)
AOL, Inc. (AOL, Chart, Download SEC Filings)
FEI Co. (FEIC, Chart, Download SEC Filings)
Plantronics, Inc. (PLT, Chart, Download SEC Filings)
Tessera Technologies Inc. (TSRA, Chart, Download SEC Filings)
New to Kapitall?1. New to the site? Click here to register for a free account, and gain access to more tools and data2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter
Looking for stocks that are rallying, but not as quickly as their earnings? This could be a sign that the stock is currently undervalued, but that it might be on its way up.?
Use Kapitall's Tools: Looking for ways to analyze this list?Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data...
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