Sales increased 12% year-over-year during the nine months ended Oct. 31, 2011, to $19.38 billion. Earnings per share (EPS) improved 22% to $3.37 in the same period, reflecting the benefits of Tech Data's geographic diversity and cost discipline. Analysts say Tech Data can deliver better than 10% annual earnings growth in the next five years.

Tech Data is also sitting on nearly $900 million of cash. This works out to roughly $22 per share, which is nearly 40% of the stock's $56 share price. Long-term debt is only $61 million and is just a fraction of the company's $2.0 billion book value. Despite a stellar balance sheet and good earnings prospects, Tech Data trades at just 10 times its forward earnings. 

The mean analyst estimate pegs 2012 earnings near $5.00 per share. If Tech Data paid out 30% of earnings as dividends, annual payments would be $1.50 and shares would yield nearly 3%.  

2. Western Digital Corp. (NYSE: WDC)
Western Digital supplies hard drives for personal computers, corporate computing data centers and home entertainment equipment. Winter floods in Thailand hurt hard-drive makers across the globe, forcing shutdowns of factories and production halts. A hard-drive shortage is imminent, many industry observers say, including Apple's (Nasdaq: AAPL)CEO Tim Cook. As a result, analysts predict rising prices should help Western Digital generate 78% earnings growth this year.

Western Digital has averaged 17% sales growth and 12% earnings growth in the past five years, and analysts forecast 12% earnings growth for Western Digital in each of the next five years.