TeleTech: Looking to Buy on a Dip as Shares Doubled in Last 5 Months

As the market has climbed 40% the last few months, my fundamental stock screen named “Diamonds in the Rough” now only returns 2 results, down from the 15 or so from February. One of these is TeleTech (TTEC), an outsourcing services company that focuses on customer management and enterprise management solutions.

As companies continue to cut operational costs in order to be more efficient and profitable, outsourcing is a strategy that has a bright future. The closing of call centers by Sprint (S) was seen as a major hurdle, but shares have recovered as other business opportunities provide a consistent revenue stream, and the company’s earnings power is underestimated.