Mega-cap tech stocks have grossly outperformed the market this year. Year to date, Apple, the largest company in the S&P 500, is up nearly 50%. Other mega-cap tech stocks having a huge year include NVDA (+185%), MSFT (+39%), and AMD (+68%).
While mega-cap tech has led the markets higher, small-cap tech has not been nearly as strong. This week’s screen culls through small-cap tech stocks with solid EPS growth potential and much lower valuations than most larger tech stocks.
Screening Criteria
- P/E and Fwd. P/E <15
- PEG ratio < 1
- EPS Growth Next 5 Years >15%
- Price to Sales <2
- Market Cap between $300 million and $2 billion
Company Summaries
ACM Research (ACMR)
Benchmark Electronics Inc (BHE)
Celestica (CLS)
Ituran Location and Control Corp (ITRN)
Vishay Precision Group (VHG)
Disclosure
This report is not a recommendation to buy or sell the named securities. We intend to elicit ideas about stocks meeting specific criteria and investment themes. Please read our disclosures carefully and do your own research before investing.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.
Follow Michael on Twitter or go to 720global.com for more research and analysis.
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