BOSTON (TheStreet) -- Small-cap technology stocks tend to get little media exposure. The following two rank high on TheStreet's -- and many brokerages' -- "buy" lists. Both have outperformed the stock market over the past year, but are still cheap.
Super Micro Computer
designs motherboards and servers. During the past three years, its stock has returned 24% annually, on average. It has surged 75% in 2010. The company is scheduled to report quarterly results today.
: Fiscal second-quarter profit increased 42% to $7.6 million, or 19 cents a share, as revenue grew 42% to $182 million. The operating margin widened from 5.7% to 6.8%. The company holds $84 million of cash, equal to a quick ratio of 1.1, and no debt.
: Super Micro Computer has advanced 228% during the past year, beating U.S. stock-market indices. It trades at a price-to-book ratio of 3.4 and a price-to-sales ratio of 1.2, 38% and 57% discounts to industry averages. It's expensive based on cash flow.
: Of analysts covering Super Micro Computer, four, or 80%, advise purchasing its shares and one suggests selling them.
( BPSG) expects the stock to advance 13% to $22.
Needham & Co.
predicts that it will rise 8% to $21.
: During the fourth quarter, six of Super Micro Computer's 15 largest shareholders, including
, purchased more shares. Four retained the size of their bets and five decreased their holdings. Fidelity owns 14% of the float.
sells networking-infrastructure components to equipment manufacturers. During the past three years, its stock has gained 9.2% annually, on average. It has jumped 18% in 2010. The company will report quarterly results on Thursday.
: Fiscal third-quarter net income decreased 7% to $29 million, but earnings per share rose 4.2% to 25 cents. Revenue decreased 8.9% to $149 million. The operating margin dropped from 29% to 23%. QLogic holds $349 million of cash and no debt.
: QLogic has risen 62% during the past 12 months, more than U.S. stock-market benchmarks. It sells for a price-to-book ratio of 4.1, a 25% discount to its peer average. It's expensive based on trailing earnings, projected earnings, sales and cash flow.
: Of researchers following QLogic, 12, or 67%, rate its stock "buy," four rate it "hold" and two rank it "sell."
Pacific Crest Securities
believes the stock will gain 21% to $27.
project that it will gain 12% to $25.
: During the fourth quarter, eight of QLogic's 15 largest shareholders, including
, amplified their bets while seven sold a portion of their stock.
owns 13% of shares outstanding.
-- Reported by Jake Lynch in Boston.