NetGear, Inc. (NASDAQ:NTGR)

Netgear is the dominant company in the tech industry for ethernet, router, and internet access devices. Their P/E is 13.73 and their stock is around $16 down from a 52 week high of $48. Look for this one to climb after the recession.

Rise in cell phone usage and oversold condition will propel this stock to triple digit gains.

Netgear sells networking equipment to maximize the electronic communication and information systems of muliple-user computer systems for small and medium-sized businesses, as well as for the personal user. Competing against such large competitors as CSCO's subsidiary, Linksys, NTGR, is a feisty competitor with a great R&D department which has just recently added innovative new products designed to maximize communications quality and efficiency at low price. NTGR, missed analysts' estimates for the first quarter of 2008. However they trade at 1 1/2-times book value, have strong cash reserves and are trading at a p/e of 14 and projected next-year p/e of 10. Much of their recent lack of growth in earnings profit is due to their high R and D expenses which should translate into nice sales, profits and growth going forward. They introduced a new product which boasts seamless transition from older systems to newer ones at very-reasonable costs. At these valuations, NTGR is not only a great growth stock, but also a value play. A director recently bought over 1 million dollars in shares at a higher price.

Netgear has been beat up by Mr Market. Down to its 52 week low today. Investing for the long term, but believe this is a great play for the short term as well.

Horrible quarter.

I could be a few months too soon with this pick now, but NTGR has served me well in the real world over the last year (although I sold prior to the last 2 earnings announcements). It seems to me like a good company in a good industry. However, would like to know more about why it failed to meet its sales targets last quarter. "Slowdown" does not realy cut it for me - not enough detail and "slowdown" alone does not explain a 20% blowout in costs and inventory on rising revs.

Could be the wakeup that m,anagement needed - or it could be the start of a medium-term dip down.

I am backing the former and 16.5 seems a reasonable entry point. Over the last few quarters, NTGR has given a good 25-50% bounce after prior disappointments, so I will punt it on that alone. In the world, I 'll watch for a bit longer. In the game, I'm in here.

Well positioned. Nearing bargain price. Networking is still an expanding field.

b/c the Gardners said so

Netgear is headed toward new ideas in the market of wireless technology. The issue of a slower economy does not seem to keep the company from being innovative, and the recent partnership with Pramati Technologies shows its willingness to expand its market base. As long as the company keeps concentrating on going forward with high quality and easy to use merchandise it should have no problem producing gains for it's shareholders in the coming months, as well as the following years.

NetGear has no debt..tomorrow they are coming out with financials...look for the stock to go up..

New at this.But looks like a deal.

is this undervalued? I think so.

NTGR
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Great products. Now is the time to buy while all the attention is on the energy sector.

This is a perfect example of a stock on sale. P/E ratio is less than the growth rate! Sign me up.

According to NetGear's reports, wireless broadband usage is increasing at a staggering 25% per year worldwide and NTGR is well poised to grow in line with it.

Motley Fool Special Report Top 2

after the beatdown of the last few months, this is my way of feeling better about it as it inches up, regaining ground. that's the plan at least.

focused on the home and small business market, allows you you make your home network wireless. great for the smalll home business. products are "cutting' edge, technology wise. plenty of room for the stock to grow in an ever increasing market for 'connectivity"

I took quite a beating on this one, but I think it has nowhere to go but up now.

With consumers cutting back, all their wireless home gear will sit on the shelves. I do believe that it will weather the storm and out perform after the next 3 months.