There's a good chance that you have not heard of Amdocs
Earlier this month, U.S. Cellular
But Amdocs is starting to show signs of a turnaround. In July, it reported net income in its second quarter of $50.8 million or 23 cents a share compared with $44.7 million or 20 cents a share during the same quarter last year. That's a small improvement worth noting.
Amdocs currently trades around $20 a share with a price-to-earnings ratio of $38.04. That is a bit pricey, but still cheap compared to some in the telecom sector. If the telecom industry continues its turnaround, the big telecom guns may start to open their wallets again and Amdocs might be a Hidden Gem. We can all hope, at least. If this happens, it might be time to take a closer look at Amdocs. But if we are in another tech bubble, like some bears predict, Amdocs may have already seen its gains for some time to come.
Brian R. Hook is a freelance financial writer and can be reached by email at firstname.lastname@example.org.