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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