10 Tech Stocks With at Least 50% Upside

BOSTON (TheStreet) -- The benchmark S&P 500 Index has rallied 7.2% so far in September on signs of an improving economy. Individual investors are overinvested in bonds and underexposed to equities. Technology is one of analysts' favorite sectors. Here are 10 lesser-known tech stocks, which are all predicted to gain at least 50% in the next 12 months, based on median targets. These stocks are risky, but expected to deliver outstanding returns. They are ordered by projected upside, from great to greatest. 10. Smith Micro Software SMSI develops mobile software. Second-quarter net income increased 48% to $1.9 million, or 5 cents a share, as revenue grew 21% to $31 million. The operating margin extended from 10% to 12%. Smith Micro's stock trades at a forward earnings multiple of 9.7 and a book value multiple of 1.5 -- 62% and 71% discounts to software peer averages. Its PEG ratio, a measure of value relative to projected growth, of 0.1 signals a 90% discount to fair value. Of analysts covering the stock, seven, or 88%, rank it "buy" and one ranks it "hold." 9. Standard Microsystems (Nasdaq; SMSC) designs silicon-based analog and mixed-signal integrated circuits. Standard swung to a second-quarter profit of $630,000, or 3 cents a share, from a year-earlier loss of $9.2 million, or 42 cents. Revenue surged 56% to $97 million. The operating margin turned positive. Standard's stock sells for a forward earnings multiple of 10, a book value multiple of 1.2 and a cash flow multiple of 9.2 -- 18%, 78% and 34% discounts to semiconductor industry averages. All eight of the analysts following Standard rate its stock "buy." 8. TNS TNS provides networking and data communications services to retailers, banks and payment processors. Second-quarter profit multiplied to $6.5 million, or 24 cents a share, as revenue increased 7.6% to $131 million. The operating margin remained steady at 12%. TNS shares trade at a forward earnings multiple of 6.1, a book value multiple of 3.5, a sales multiple of 0.8 and a cash flow multiple of 3.4 -- 63%, 52%, 75% and 76% discounts to IT peer averages. Of analysts evaluating the stock, five, or 71%, advise buying and two recommend holding. To read the rest, head over to TheStreet.com