So we added one final parameter: high projected EPS growth for the next five years. This indicates that Wall St. believes the firms in question are working in a space where they have access to a growing market.With a screen this detailed, just five tech stocks remained on our list. Click on the interactive chart below to view data over time. 1.CalAmp Corp. ( CAMP):Develops and markets wireless communications solutions that deliver data, voice, and video for critical networked communications and other applications in the United States. Market cap at $1.11B, most recent closing price at $31.48. However executives explained on an earnings call that this was mostly because Q4 earnings were so high, few within the company thought they could beat it. CalAmp’s main leverage is its MTM software, which facilitates cloud-based communication between devices, an industry that’s expected to grow from 10 billion devices to 50 billion by 2020. 2.Constant Contact, Inc. ( CTCT):Provides on-demand email marketing, social media marketing, event marketing, and online survey solutions primarily in the United States. Market cap at $850.7M, most recent closing price at $27.53. Is in the email and digital marketing space, and has benefitted enormously from a wave of consolidation in the sector. 3.Pegasystems Inc. ( PEGA ):Develops, markets, licenses, and supports software to automate business processes primarily in the United States, the United Kingdom, and Europe. Market cap at $1.75B, most recent closing price at $46.0. Pegasystems is a software and office infrastructure company that offers a suite of products and consulting services to its customers that compete with the likes of IBM (IBM) and Oracle (ORCL). A recent important acquisition of Antenna Software – which develops mobile applications — will allow them to better compete with the giants in this space. The move fueled bullish sentiment on the stock, sending it on a 106% gain for the year. Though the stock is pretty expensive with a P/E ratio above 40, it also pays a healthy dividend.
4.Autobytel Inc. ( ABTL):Operates as an automotive marketing services company in the United States. Market cap at $131.65M, most recent closing price at $14.79.Autobytel is another one of the year's top performers, and an interesting small cap company that specializes in the marketing of automobiles. They develop websites for automobile manufacturers and retailers, as well as provide services to people who are looking for lenders. Autobytel has benefitted enormously from America’s recovering auto sector, and is up 332.1% for the year. It will be interesting to see how the company reacts as many of the biggest automakers roll back their sales projections for next year. One can see the company moving alongside auto stocks – however there is also a case to be made that Autobytel would benefit from an environment where strapped consumers prefer pre-owned rather than new vehicles. 5.Alliance Fiber Optic Products Inc. ( AFOP):Engages in the design, manufacture, and marketing of a range of fiber optic components and integrated modules incorporating these components to communications equipment manufacturers and service providers in North America, Europe, and Asia. Market cap at $219.48M, most recent closing price at $11.94. Unlike other companies on our list, Alliance Fiber Optic Products (AFOP) doesn’t have to compete with any huge competitors. Most of the companies that make fiber optic products and components are in the small to micro-cap range, but Alliance is on the larger end, relatively speaking, at $297.92M market cap. Alliance has by far the best performance and is up 184% for the year. Though it only claims about 200 customers – mostly communications equipment manufacturers – Alliance might be a good play for value investors. The stock offers a high dividend for the sector at 0.91%, and appears undervalued based on a forward P/E of 13 – despite such high returns in 2013.
( List compiled by James Dennin and Emily Smykal, Kapitall Writers. Analyst ratings sourced from Zacks Invesmtne Research, all other data sourced from Finviz. This article was originally posted on NASDAQ.)