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.