Recommended by: Mark Oelschlager, co-manager of the Red Oak Technology Select Fund (ROGSX), ranked No. 25 by Bloomberg Rankings
Likes it because: Accenture (ACN) is trading at only nine times trailing 12 months' free cash flow per share, even though the company has been able to increase its free cash flow by 15 percent each year since 2002. Accenture has tripled its dividend over the last five fiscal years and bought back $10.7 billion worth of stock, notes Oelschlager. The company has been more stable than most outfits in the tech industry thanks to diversified business lines, customers, and geographic exposure, and may be undervalued because it's not as exciting a story as those that most tech investors look for, he says.
The stock's year-to-date performance through Oct. 15: +9.1 percent