iGATE Corp (NASDAQ:IGTE)

CAPS Rating: 4 out of 5

The Company is a worldwide provider of information technology and offshore outsourcing services to large and medium-sized organizations.

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Player Avatar ScalaAnalyst (36.39) Submitted: 1/25/2013 4:34:35 PM : Outperform Start Price: $17.63 IGTE Score: -11.40

They have 45% insiders as owners so you know these guys will be steering the company into positive directions. When their personal income is affected they tend to keep tabs on where the company is going. This company has earnings/book value ratio that is quite nice which shows how efficient are. Most of the ratios against their book value look good. Their cash flow growth for the last few quarters is getting better. The earnings growth slope is positive so I believe this company will continue to provide stellar earnings in the future. This company has a PEG is 0.54 and a PE of 15.06 which is slightly higher than all the companies in this industry, but this is to be expected for a earnings based growth company. Granted it would have been nice to pick this stock at 15.5/sh level, but I believe this still has some growth and value for at least the next two years.

On earnings this stock is quite stellar. Given that they had some poor performance in 3 quarters last year compared to the street estimates, they still pulled off earnings that we quite nice. In Sept quarterly earnings release they missed earning by only 1 cent. Instead of pulling off 0.34/sh they pulled off 0.33/sh. I'm OK with that. If you are one of those that sell your stock when it missed earnings by a penny, then this argument is falling on deaf ears.

Most of the analysis that track this stock agree that they will pull off 0.37/sh and 0.34/sh this next two quarters. The earnings for the next two years should be 1.56/sh and 2.04/sh. This would give one a growth of about 30% for the next few years.

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