NEW YORK (TheStreet) -- Unlike his other picks for the top stocks under $10 to own in 2015, TheStreet's David Peltier's latest pick is actually positive on the year. Shares of Sonus Networks (SONS) generated a 24.5% return in 2014 and are poised to outperform again in 2015.
But according to Peltier, manager of the Stocks Under $10 portfolio, shares of this telecom-equipment maker have the potential to move up several dollars per share in the coming year, a big deal for a $4 stock.
The company has "very good growth," driven by new products, which is a nice compliment to Sonus Networks' "very strong balance sheet," he explained.
When impressive growth combines with a strong, flexible balance sheet, EPS growth has a chance to really take off. That's exactly what Peltier expects this year, as he's looking for EPS growth of 50% to 60% for fiscal 2015.
In the most recent earnings release, Sonus reported revenue growth of 7.5% and projected fourth-quarter earnings per share of 3 cents, in-line with expectations. Margins also rose in the most recent quarter. Fourth-quarter earnings will likely be reported in February.
As an aside, Peltier has also dug up many of 2015's top dividend plays headed into the new year, including stocks such as Lockheed Martin (LMT) , General Electric (GE) , Tompkins Financial (TMP) and Sonoco Products (SON) .