Intel Corporation (INTC) – Earnings were outstanding (2nd Quarter sales jumped 34%) along with optimistic long-term projections. Intel hones a tremendous balance sheet with over $17 billion dollars in cash and less than $3 billion in debt. Their P/E ratio is trading historically low right now (currently at 10; historically trades around 20). Quarter after quarter Intel has destroyed analyst estimates and guided future prospects higher. Intel has monopolized the computer business; regardless of Mac or PC, it uses an Intel Chip. Don’t expect this trend to stop anytime soon, meaning Intel can easily rise to $28-$29.
NVIDIA (NVDA) – NVDA sell microchips – and lots of them. This stock has transformed its business turning a $200 million loss in the first quarter of 2009 into a $138 million profit a year later in Q1 2010. Based on book value, NVDA is cheap. With a PEG of 0.8 and P/E of 12 the firm is discounted significantly compared to it’s peer competitors. Throughout the past year they have significantly trailed the sector, but heading into the fall I think NVDA will soar to $20.
Corning (GLW) – As a manufacturer of specialty glass for many technology companies (most notably the Gorilla Glass used in the iPhone 4), GLW is extremely undervalued. Currently, shares are trading at 8 times next year’s earnings. Historically though they have traded at close to 15. Adding to this, the company projects a grow rate of 12% over the next five years. GLW holds a strong balance sheet with $4 billion in cash while generating millions more. Expect this stock to rise to around $25.
Thermo Fisher Scientific (TMO) – TMO sells analytical instruments. After a successful first quarter where profits rose 55%, TMO looks to continue the streak. TMO’s P/E ratio of 13 reflects a significant discount compared to industry averages, making a strong case for TMO to rise to $65.
Formula Systems (FORTY) – FORTY is an Israel-based software and IT company. Recently, they have been on a tear with first quarter profits soaring 42%. This past year the stock has soared, but don’t expect this trend to stop anytime soon. With a P/E ratio of 12, this stock has become a clear “BUY.” The 10% dividend it pays out is not bad either.