Stocks & Investing
Wed, August 24, 2011PRFT, CASS, IGTE, SNX, FORR, VIT, Computer Services Stocks Undervalued
Published in Stocks and Investing on Wednesday, August 24th 2011 at 6:01 GMT by WOPRAI
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. PERFICIENT INC (NASDAQ:PRFT), CASS INFORMATION SYSTEMS INC (NASDAQ:CASS), IGATE CORP (NASDAQ:IGTE), SYNNEX CORP (NYSE:SNX), FORRESTER RESEARCH INC (NASDAQ:FORR), VANCEINFO TECHNOLOGIES-ADR (NYSE:VIT) 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
PRFT PERFICIENT INC 8.64 18.09 52.20% Undervalued Computer Services
CASS CASS INFORMATION SYSTEMS INC 35.64 44.35 19.60% Undervalued Computer Services
IGTE IGATE CORP 10.25 21.14 51.50% Undervalued Computer Services
SNX SYNNEX CORP 24.52 34.3 28.50% Undervalued Computer Services
FORR FORRESTER RESEARCH INC 32.91 34.1 3.50% Undervalued Computer Services
VIT VANCEINFO TECHNOLOGIES-ADR 12.16 32.64 62.70% 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.
PERFICIENT INC (NASDAQ:PRFT) - Perficient, Inc. provides information technology consulting services primarily in the United States. The company designs, builds, and delivers business-driven technology solutions using third party software products. Its solutions include business analysis, enterprise portals and collaboration, business integration, enterprise content management, online customer relationship management, service oriented architectures and enterprise service bus, business intelligence, ecommerce, mobile technology solutions, technology platform implementations, and custom applications. Perficient, Inc. also has operations in Canada and Europe. The company was founded in 1997 and is based in Saint Louis, Missouri.
CASS INFORMATION SYSTEMS INC (NASDAQ:CASS) - Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. The company provides transportation invoice rating, payment, audit, accounting, and transportation information services. It also processes and pays utility invoices, including electricity, gas, and other facility related expenses, as well as offers bill processing, audit, and payment services for telephone, data line, cellular, and communication equipment expense to the telecommunications expense management market. In addition, Cass Information Systems, through its banking subsidiary, Cass Commercial Bank, provides a range of commercial banking products and services, such as commercial and commercial real estate loans; checking, savings, and time deposit accounts; and other cash management services to individual, corporate, and institutional customers. The company provides banking services to privately owned businesses, and churches and church-related ministries. As of December 31, 2009, it operated five branches in the St. Louis metropolitan area and southern California. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. The company was founded in 1906 and is headquartered in Bridgeton, Missouri.
IGATE CORP (NASDAQ:IGTE) - iGATE Corporation provides outsourcing solutions that offer a business outcome based pricing model through an integrated Technology and Operations (iTOPS) structure with global service delivery. The company works with clients to optimize their businesses, secure year-on-year cost benefits, and tie costs to business needs and results. Its iTOPS model assures clients of year-on-year savings by process and technology optimization, access to proprietary tools, and migration to enhanced processes. The company provides various services, including IT consulting; independent verification and validation; application development and maintenance; data warehousing; data mining; business intelligence solutions; ERP/enterprise solutions; BPO/business service provisioning; infrastructure management; testing/independent verification and validation; and KPO and contact center services. It serves insurance, banking, financial services, and capital market industries. The company has operations in 16 countries, including India, Canada, the United States, Europe, Mexico, Singapore, Malaysia, Japan, and Australia. iGATE Corporation was founded in 1996 and is headquartered in Fremont, California.
SYNNEX CORP (NYSE:SNX) - SYNNEX Corporation, a business process services company, provides services in distribution, contract assembly, and global business services. The company operates in two segments, Distribution Services and Global Business Services (GBS). The Distribution Services segment distributes information technology systems, peripherals, system components, software, networking equipment, and complementary products to various customers, such as value-added resellers, system integrators, and retailers, as well as provides assembly services to original equipment manufacturers (OEMs), including integrated supply chain management, build-to-order and configure-to-order system configurations, materials management, and logistics. The GBS segment offers various services comprising customer management, software development, and back office processing. This segment delivers its services through voice, chat, Web, email, and digital print. It also sells products complementary to these service offerings in China. In addition, SYNNEX Corporation offers various financial services, including net terms, third party leasing, floor plan financing, letters of credit, and arrangements to collect payments directly from the end-user; online services; and marketing services, as well as technical support services consisting of pre and post-sales support. The company serves resellers, retailers, and OEMs located worldwide. SYNNEX Corporation, formerly known as SYNNEX Information Technologies, Inc., was founded in 1980 is headquartered in Fremont, California.
FORRESTER RESEARCH INC (NASDAQ:FORR) - Forrester Research, Inc., an independent research company, provides pragmatic and forward-thinking advice to business and technology customers worldwide. It offers its products and services to senior management, business strategists, and marketing and information technology professionals. The companys principal syndicated research product, RoleView Research, provides clients with access to its syndicated research to inform their strategic decision-making. The RoleView consists of library of cross-linked documents that interconnects reports, data, product rankings, best practices, evaluation tools, and research archives. Its Data products and services focus on consumers and business users attitudes and behavior toward technology, including ownership, future purchases, and adoption trends. The company provides Consumer Technographics, which delivers primary data and quantitative research based on surveys of households and individuals. It also offers business data services, a quantitative research program, which provides assessments of what motivates businesses to choose certain technologies and vendors over others. In addition, the company offers research-based advisory and project consulting services, which assist clients in developing executing technology and business strategy, informing critical decisions and reducing business risk, and making technology investments. These services also offer Web site reviews that provide targeted, action-oriented assessments of clients Web sites, extranets, or Intranets. Further, it offers Forrester Leadership Boards, a membership program for executives and other key employees to participate in Chief Information Officer Group, the Chief Marketing Officer Group, and various IT, marketing, and executive programs and councils addressing issues of interest to the professional roles. The company was founded in 1983 and is headquartered in Cambridge, Massachusetts.
VANCEINFO TECHNOLOGIES-ADR (NYSE:VIT) - VanceInfo Technologies Inc., together with its subsidiaries, engages in the provision of information technology (IT) services. The company offers research and development services in various phases of development, including requirements analysis, concept generation, product realization, quality assurance and testing, and technology and information transfer; and develops software products, such as middlewares, Internet protocols, and other software. It provides enterprise solutions for packaged evaluation and selection, packaged implementation, customization, regional rollout, version upgrades, and business intelligence/data warehouse, as well as enhancement, maintenance, and product support; and designs, develops, and implements software solutions to meet various client requirements, and provides maintenance services for software systems. VanceInfo also offers customized and automated testing practices, which include functional testing, globalization and localization testing, automation testing, performance testing, remote testing, and test process consulting; and globalization and localization services that comprise software and content localization, localization engineering, localization testing, internationalization engineering, and internationalization testing. The company serves technology, telecommunications, financial services, manufacturing, and retail and distribution industries primarily in China, the United States, Europe, and Japan. VanceInfo Technologies Inc. was founded in 1995 and is headquartered in Beijing, the Peoples Republic of China.
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