After suffering a very rough 2016, Samsung Electronics Co Ltd. stock has surged more than 70% over the last year and more than 50% year-to-date (YTD), Google Finance figures show as of Tuesday, significantly outperforming Apple Inc. (AAPL) amid strong demand for new OLED screens and memory chips. Samsung could enjoy significant upside going forward, as its shares are trading at lower multiples than Apple's and its profits could surge next year, according to Barron's. (For more, see also: Why Samsung Stands to Gain If iPhone X Is a Hit.)

Samsung 'Massively Undervalued'

"Samsung is massively undervalued and probably the best opportunity in global technology right now," said Sanford Bernstein analyst Mark Newman, Barron's reported. Bernstein has provided a target of 3.2 million won (roughly $2,836), representing a more than 18% premium over the stock's price at the time of report. However, Newman has asserted that the shares are worth 4 million won, nearly 50% higher than the current share price. 

Chip Market Dominance

He pointed to Samsung's dominance of the market for global memory chips, according to Barron's. "There is a huge demand for memory chips globally right now, and they are a big leader in that segment by a wide margin." By 2018, analysts have estimated that these chips will account for 70% of Samsung's profits. 

At the time of report, Samsung shares were trading at a price-earnings ratio (P/E Ratio) of 12.73, roughly 40% below Apple's P/E Ratio of 17.76, Google Finance figures show. 

Improving Stock Rating

Samsung's net cash could rise to $85 billion by the end of next year as free cash flow rises and capital expenditures decline, according to Barron's. Should the technology company's earnings per share surge this year and next, analysts may very well change the firm's rating. (For more, see also: Does Samsung Have Even More Profit Upside in Q2?)