Monday, January 25, 2010
NetScout Systems: Undervalued Play on Wireless Buildout
Our Dallas presenter likes NetScout Systems (NASDAQ: NTCT, $14.66) at this level. This provider of network performance management solutions is seeing uptick in customer activity in wireless and financial services segments. Demand for the company's sophisticated monitoring tools is poised to expand as the data traffic on wireless networks continues its exposive growth. The coming 4G rollout will further raise the appeal of NTCT's solutions to carriers. Growth in high-frequency trading necessitates upgrades to infrastructure at exchanges, brokers and other participants in the financial services industry, another growth driver for NetScout. The stock is trading at a substantial discount to projected earnings.