The market frequently underprices stocks as it follows a herd mentality, misrepresents data, believes misinformation and takes a random walk all the while taking full advantage of its tunnel vision. Is it any wonder they get surprised so often? Here are five stocks that may surprise the market in the near future.
Synchronoss Technologies (SNCR): Synchronoss Technologies recently reported third quarter results beating analyst revenue estimates. The consensus was a revenue of $58.3 million but the company reported a revenue of $59.2 million (see this Business Wire). Synchronoss Technologies supplies wireless carriers with transaction management services and the company saw a jump of 67% in earnings on increased demand in the quarter. The company also reported a $0.04 per share increase in net income over last year coming in at $3.57 million or $0.09 per share. In the same quarter last year Synchronoss Technologies reported a net income of $2.14 million or $0.05 per share. For comparison sake the company’s two closest competitors are CSG International Inc. (CSGS) and Amdocs Ltd. (DOX). CSG International Inc. has a PEG ratio of 0.95 with a forecast earnings growth of -12.78% in 2011 and 7.04% in 2012, Amdocs Ltd. has a PEG ratio of 1.15 with a forecast earnings growth of 0.00% in 2011 and 14.86% in 2012. Synchronoss Technologies has a PEG ratio of 2.57 indicating that it is quite expensive in relation to its competitors but the company’s forecast earnings growth of 28.17% in 2011 and 46.75% in 2012 far exceeds both of its competitors and may justify the premium. To continue reading, click here