When the market suffers from myopic vision, value investors get going. It looks like another opportunity has popped up for those who look for stocks with strong fundamentals but trade at cheap rates. In my previous article on OmniVision Technologies (Nasdaq: OVTI), I talked about the company's estimate-topping results in the just-concluded quarter. However, because of its tepid outlook for the ongoing quarter, shares tanked.

I smell opportunity.

The numbers
The company has compounded its revenue growth at a rate of 14% over the past five years. But it's the most recent numbers that really catch my attention. OmniVision saw its revenues jump an astounding 51% from a year ago as it kept on shipping its image sensors in impressive quantities. The explosion in sales of Apple's (Nasdaq: AAPL) iPhone, for which OmniVision supplies image sensors, helped its cause, as the company shipped around 170 million units in the previous quarter.

The company's moderate outlook for the current quarter was possibly built on concerns that it'll lose the Apple contract. However, it seems those suspicions are seeming less likely now that the company's iPhone purchase obligations for the current quarter stand at $258 million, up from $247 million in the previous one. It may also be noted that OmniVision provides its sensors to smartphone manufacturers HTC and Motorola Mobility (NYSE: MMI). Google's (Nasdaq: GOOG) Android-based smartphones are selling faster than David Beckham's LA Galaxy merchandise, and its recent acquisition of Motorola would certainly help OmniVision accelerate shipments.

Value
OmniVision boasts of a P/E ratio of 7. That's really cheap when compared with the industry average multiple of 15 times. Consider how it stacks up against these peers:

Company

Trailing P/E (TTM)

Forward P/E

OmniVision 7.1 8.0
Micron Technology (Nasdaq: MU) 11.1 17.5
Himax Technologies (Nasdaq: HIMX) 12.9 13.8
Avago Technologies (Nasdaq: AVGO) 16.3 13.0

Source: Capital IQ, a division of Standard & Poor's. TTM= trailing 12 months.

The forward P/E goes up a bit, but that's most probably due to the company's shallow short-term outlook. Should its business continue to expand with the booming smartphone market, the company looks good for the long run  -- which is what we Fools really care about.

The Foolish takeaway
OmniVision has maintained its sound fundamentals and, should it hang on to its iPhone contracts for the next generation, appears quite undervalued when compared with the industry and its peers. So if you're a value investor, you may consider adding this stock to your portfolio or add it to My Watchlist if you wish to know more about its performance in the next earnings release.

Fool contributor Harsh Chauhan doesn't own any shares in the companies mentioned in this article. The Motley Fool owns shares of Google and Apple. Motley Fool newsletter services have recommended buying shares of Apple and Google and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.