“Shares of GT Advanced Technologies have absolutely crushed it over the past 14 months, up more than 324%, beating the market by almost 300%,” Jason Hall writes for The Motley Fool. “Now, get this: There is strong indication that the stock may just be undervalued today. Sounds crazy, I know, but based on what management told us just this week, the stock trades at a price to earnings of 8.4.”

“As a comparison, partner Apple, largely the source of GT Advanced’s first step toward massive growth through its partnership to produce Sapphire for an as-yet unnamed product, carries a P/E ratio of around 13,” Hall writes. “The difference? Apple’s P/E of 13 is based on the past 12 months — actual proven results — while the P/E of 8.4 I’m touting for GT Advanced is based on the $1.50 per share in (non-GAAP) earnings that management is telling us the company will reach… in 2016.”

“Obviously there’s a lot of time — and work — before the company actually gets to that point, but any way you slice it, today’s share price looks awfully attractive based on that kind of potential,” Hall writes. “Investors need to remember that the stock price is still below its 2008 IPO price, and the all-time high set in 2011. Before selling just based on strong returns over the past year, it’s important to remember that investing in a company is largely about what’s coming, not what has already happened.”

Read more in the full article here.

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