Last week Green was as good as Gold as Alternative Energy Stocks basked in the sunlight out producing the S&P 500 by more 9% for the week. The Correct Call subscribers have shared in the warmth as we highlighted Solarfun last Friday as one of our stocks to trade on earnings. SOLF blew away estimates this morning and the stock is on the march.

The rest of the top performing sectors look like this:

We looked under the hood of the top performing sectors to see if we could find companies worthy of our readers’ consideration. The Correct Call identified a Computer & Office Equipment stock that should increase your cash flow.

TNS, Inc. (TNS) provides networking, data communications, and value added services to retailers, banks, and payment processors worldwide. It also offers secure data and voice network services to the financial services industry. The company provides point-of-sale/point-of-service that provides data communications services to payment processors.

The company is benefiting from the secular trend shift to electronic transactions and financial market connectivity. It exceeded estimates by 37% in its first quarter, while revenues grew 16%. Growth was fueled by its International Services Division (ISD) which grew 32%.

Another positive was that long-term debt is decreasing due to increasing free cash flow. This is a healthy sign for any company. Free cash flow is expected to grow throughout the year, which will further strengthen the balance sheet. Gross margins also grew over 500 basis points to 51.60%.

The analyst community is also quite bullish on the stock judging by their earnings estimates. Over the past month, this year’s estimates have increased over 10% to $1.19 per share. Earnings are expected to jump another 18.6% next year. The company has a nice history of exceeding estimates. The past four quarters have seen an average surprise of 43.7%. The stock is attractive at 17.6x next year’s estimates. We see the stock at $30 this year.

Disclosure: none