Today US Investment Report Editor Stephen Quickel recommends a fast-growing
tech stock.
“Synaptics, Inc. (SYNA, Nasdaq)—This Silicon Valley peripherals supplier is a
leader in supplying touchscreens and trackpads to manufacturers of personal
computers and mobile devices throughout the Far East and the U.S. Its earnings,
spurred by faster growth in the more profitable mobile device market, have beaten
analyst estimates dramatically the last two quarters—including a net of $0.79 for
the March 2013 quarter vs. an expected $0.57 per share. As a result, the consensus
Wall Street estimate for its June 2013 fiscal year has been lifted from $2.03 to $2.62,
and the 2014 estimate has been hiked from $2.30 to $3.29. That has ballooned its
stock from 25 to 45 since last fall—yet it still trades at a 13 forward P/E. Synaptics’
touchscreen technology is an important feature in Samsung’s Galaxy S4 smart
phone, which is expected to sell 80 million-plus units. Increased penetration of the
notebook market is expected to more than offset slipping sales in the PC sector.
Given a probable P/E multiple upgrade to, say, 18 times current-year earnings, this
stock could rise into the 60-70 range in the coming six to 12 months. Synaptics’ next
earnings report is due on August 8. Buy. Target Price 55. Suggested Loss Limit 40.8.”
Stephen Quickel, US Investment Report, www.usinvestmentreport.com,
215 862-0399, 5/17/13