Stocks & Investing
Stocks and InvestingStocks and Investing 
Wed, August 24, 2011
CSC, PTI, WYY, GIB, EBIX, SAPE, Computer Services Stocks Undervalued
August 24, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Computer Services sector and these stocks are the most undervalued as of today. COMPUTER SCIENCES CORP (NYSE:CSC), PATNI COMPUTER SYSTEMS-ADR (NYSE:PTI), WIDEPOINT CORP (AMEX:WYY), CGI GROUP INC - CLASS A (NYSE:GIB), EBIX INC (NASDAQ:EBIX), SAPIENT CORPORATION (NASDAQ:SAPE) are all expected to go Up as they are Undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry
CSC COMPUTER SCIENCES CORP 29.02 51.61 43.80% Undervalued Computer Services
PTI PATNI COMPUTER SYSTEMS-ADR 11.64 19.92 41.60% Undervalued Computer Services
WYY WIDEPOINT CORP 0.8075 1.07 24.50% Undervalued Computer Services
GIB CGI GROUP INC - CLASS A 19.73 21.85 9.70% Undervalued Computer Services
EBIX EBIX INC 15.54 23.99 35.20% Undervalued Computer Services
SAPE SAPIENT CORPORATION 10.48 12 12.70% Undervalued Computer Services
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
COMPUTER SCIENCES CORP (NYSE:CSC) - Computer Sciences Corporation offers information technology (IT) and business process outsourcing, as well as IT and professional services to the commercial and government markets. The companys outsourcing services include the operation of customers technology infrastructure, including systems analysis, applications development, network operations, desktop computing, and data center management. Its business process outsourcing services consist of procurement and supply chain, call centers and customer relationship management, credit services, claims processing, and logistics. It also provides IT and professional services comprising systems integration services, such as designing, developing, implementing, and integrating information systems; and consulting and professional services that include advising clients on the strategic acquisition and utilization of IT and on business strategy, security, modeling, simulation, engineering, operations, change management, and business process reengineering. In addition, the company licenses sophisticated software systems for the financial services and other industry-specific markets and provides a range of end-to-end business solutions; offers enterprise modernization, telecommunications and networking, managed services, base and range operations, and training and simulation; and provides computer equipment repair and maintenance services and credit reporting services. It offers its services to the aerospace and defense, automotive, chemical and natural resources, consumer goods, financial services, healthcare, manufacturing, retail and distribution, telecommunications, and technology industries. The company has operations in North America, Europe, and the Asia-Pacific region, including India and Australia. Computer Sciences Corporation was founded in 1959 and is based in Falls Church, Virginia.
PATNI COMPUTER SYSTEMS-ADR (NYSE:PTI) - Patni Computer Systems Limited, together with its subsidiaries, provides information technology services. Its services include application development, application maintenance and support, packaged software implementation, infrastructure management services, product engineering services, business process outsourcing, and quality assurance services. The company offers its services to customers through industry practices in the insurance, manufacturing, retail and distribution, financial services and communications, media and utilities, life sciences, and other industries. It also has technology practices that offer research, design, and development services for product engineering and independent software vendors. The company primarily operates in United States, Europe, Japan, and India. Patni Computer Systems Limited was incorporated in 1978 and is headquartered in Mumbai, India.
WIDEPOINT CORP (AMEX:WYY) - WidePoint Corporation provides technology-based products and services to the government sector and commercial markets in the United States. The company offers various solutions and proprietary intellectual property in mobile and wireless full life cycle management solutions; cybersecurity solutions; and other associated information technology (IT) consulting services and products. Its cybersecurity solutions comprise services related to identity proofing, credential issuing, and public key infrastructure technology. The company also provides an analysis of an organizations business and technical policies across application and data resources for the implementation of various devices, such as smart cards, security tokens, cell phones, and personal computers; and facilitates public access to the services offered by government agencies through on-line access to computers for purposes of reviewing, retrieving, providing, and exchanging information. In addition, the company provides consulting services and products in the areas of IT architecture and planning, including IT strategic planning, software selection, and project management; software implementation comprising application development and integration, and business intelligence; and IT outsourcing consisting of infrastructure and applications management. Further, it offers information assurance (IA) services, such as certification and accreditation, security architecture design, system security planning, security risk assessment and mitigation planning, vulnerability testing and remediation, customizable IA plans and processes, and continuity of operations planning services; and engineering services that specialize in forensic informatics, as well as life cycle system support services. The company markets its solutions through direct sales force and alliances with various strategic partnerships in specific industries. WidePoint Corporation was founded in 1996 and is based in Oakbrook Terrace, Illinois.
CGI GROUP INC - CLASS A (NYSE:GIB) - CGI Group Inc., through its subsidiaries, provides information technology services (IT) and business process services in Canada, the United States, India, Europe, and the Asia Pacific. The company offers a range of IT and management consulting services, including business transformation, IT strategic planning, business process engineering, and systems architecture services. It also provides systems integration services. In addition, the company offers outsourcing services consisting of development and integration services for applications; applications maintenance and support services; technology infrastructure management services; and transaction and business processing services, such as payroll, insurance processing, and document management services. It targets the government and healthcare, financial services, telecommunications and utilities, retail and distribution, and manufacturing sectors. CGI Group Inc. was founded in 1976 and is headquartered in Montreal, Canada.
EBIX INC (NASDAQ:EBIX) - Ebix, Inc., together with its subsidiaries, provides software and e-commerce solutions to the insurance industry primarily in North America, Australia, New Zealand, India, and Singapore. The company operates data exchanges, which provide connectivity between consumers, agents, carriers, and third party providers, as well as enables the participants to carry and process data in the areas of life insurance, annuities, employee health benefits, and property and casualty (P&C) insurance. It also involves in the sale, customization, development, implementation, and support of its P&C back-end insurance carrier system platforms. In addition, the company offers business process outsourcing services, which include certificate origination, certificate tracking, claims adjudication call center, and back office support. Further, it engages in designing and deploying broker systems comprising three back-end systems consisting of eGlobal for multinational P&C insurance brokers; WinBeat for P&C brokers in the Australian and New Zealand markets; and EbixASP for the P&C insurance brokers in the United States. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Atlanta, Georgia.
SAPIENT CORPORATION (NASDAQ:SAPE) - Sapient Corporation helps clients to leverage marketing and technology to transform their businesses. The company offers integrated marketing and creative services, including visual concept, design, and implementation through multiple media; brand building and direct response programs; customer loyalty strategies; customer relationship strategy and implementation; and integrated advertising campaigns. It provides Web and interactive development services, such as user interface design and development; site design and development; custom application development; user research and testing; content management and technology development and implementation; and quality assurance testing. Its traditional advertising services comprise brand strategy, copywriting, creative advertising, and production for print, radio, and television campaigns. The company offers media planning and buying services that include media strategy development, Website search engine marketing, email marketing, online advertising, viral and social media marketing, emerging channels marketing, and gaming. Its strategic planning and marketing analytics services consist of brand strategy development, consumer and market research, advertising message content, Internet and blogosphere analytics and coordination, and management of online and print media. The company offers commerce technologies; business applications, such as custom and package applications, enterprise resource planning, supply chain solutions, and Web solutions; advisory services comprising strategy alignment, subject matter expertise, process and architecture definition, program management, and training; and analytics services. It offers its services to financial services, consumer and travel, energy services, government, health and education, and automotive and industrial sectors. The company markets its services primarily in North America and Europe. Sapient Corporation was founded in 1990 and is headquartered in Boston, Massachusetts.
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