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Tech Data Corp (TECD - Free Report) has pleased investors with yet another earnings surprise since being featured as a Zacks Rank Buy in late 2010.

Shares are pushing new highs, but remain a bargain and are expected to continue to grow at double-digit rates.

Company Description

Tech Data Corp is a global distributor of technology products from IT hardware and software producers. End users range from small businesses to large enterprises and government agencies.

Another Earnings Surprise

On Mar 1 Tech Data reported its ninth consecutive earnings surprise after it wrapped up a "record-setting year." Fourth-quarter sales were up 13.3%, to $7.1 billion on a year over year basis and a 15.5% jump sequentially to beat revenue expectations.

Net income rose 10% to $77.3 million for the period, which broke down to $1.63 per share. EPS was up 18 cents and beat the Zacks Consensus Estimate by 20 cents.

Optimistic Outlook

Tech Data said it expects double-digit growth for its operating income, net income and EPS for fiscal 2012 as well as added $100 million to its running share repurchase program.

Analysts took it all in and raised full-year estimate for both fiscal 2012 and 2013. Forecasts for the current year jumped 32 cents, to $5.03, which is a 15% growth rate. Next year's projections are up 24 cents to an average of $5.54, a 10% growth rate.

Trading at a Discount

Shares of TECD are trading at just 10 times forward estimates and have a PEG ratio of 1.0. Both of those are pointing to a solid value. The case is strengthened by a 0.1 P/S and 1.12 P/B.

The Chart

While the stock is pressuring its recently set multi-year high investors may be a bit gun-shy. But, if you take a look at the steady earnings growth, it should quell those fears.

Read the December 1st Feature Here

Tech Data - ticker TECD >

Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the market-beating Zacks Small Cap Trader service

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