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Non-sexy stocks with the potential for sexy gains

Tech Data Corp.

Tech Data (TECD) is a wholesale distributor of technology equipment. The stock took a bit hit at the end of August in reaction to a weaker than expected second-quarter report, but sales were above estimates, and the stock has steadily been erasing some of its post-earnings losses. Shares have risen over the last month, and are currently trading at $91.18, versus an average price target of $113.17, which indicates shares are undervalued by as much as 24%. Despite the Q2 earnings miss, profits were up 22.5% year over year, and analysts expect the company to show full year earnings growth of 38.7% for the current year, and 16.6% next year. The recent sell off in the stock has lowered its P/E to just 17.0, which combined with the high growth estimates suggest the stock has traded into oversold territory and there is a lot of value at the current level.

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Chart courtesy of www.stockcharts.com

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.