3. Entropic Communications (ENTR) is a semiconductor company, specializing in building chips and integrated circuits that enable connected home entertainment. It has surged 269% in 2010.
12-Month Net Income Growth: 113%
Cash Flow Multiple: 43 (192% peer premium)
Quarterly Operating Profit Margin: 18%
Analyst Opinions: Of researchers covering Entropic, 15, or 88%, still rate it "buy." One rates it "hold" and one ranks it "sell." A median target of $12.33 suggests a gain of 10%. Barclays predicts the stock will rise 24% to $14. JPMorgan, on the other hand, sees a marginal advance to $12. A forward earnings multiple of 15 is on par with the peer average. Entropic's book value multiple of 8 signifies a sizable premium.