Savvy Trades and Investments

[2morrowsGains]

SYNA...Tremendous value equals tremendous growth potential...

Tim Brugger (Synaptics): The "human interface solutions" provider doesn't turn heads as some growth stocks do. After its 4% increase in share price following its solid fiscal 2017 third-quarter earnings on April 27, Synaptics' shares are up just 2.5% year to date. Toss in a sky-high price-to-earnings (P/E) ratio of 81, and ambitious investors should look elsewhere, right? Not so fast.

Last fiscal year was a tough one, so many pundits expect the improved comparables will lead to more strong quarters like Synaptics' recent one. Synaptics reported a 10% jump in revenue to $442.2 million that, when combined with its expense-management efforts, resulted in a 5% improvement in per-share earnings to $1.27, excluding one-time items.

It's not what Synaptics has done that makes it a sound growth stock for investors with some time and risk tolerance; it's what's coming. Synaptics' new in-display fingerprint-sensor solution could prove to be a game-changer, and not only in the smartphone market. Another focus of CEO Rick Bergman is dominating Synaptics' piece of the fast-growing business in auto infotainment centers.

One conservative estimate suggests that the market for car infotainment centers will grow to more than $52 billion in five years. Taking a leadership position in burgeoning markets certainly bodes well for Synaptics in the years ahead, as does its relative value.

Value...but it's trading at the aforementioned 81 times earnings? Here's a tidbit many investors seem to have overlooked: Synaptics' forward P/E is a mere 12.5 times earnings. Synaptics' forward P/E speaks to its relative value, making it ideal for long-term, ambitious investors.
https://www.fool.com/investing/2017/05/12/3-growth-stocks-for-ambitious-investors.aspx?yptr=yahoo