Technology Sector: Value Investing Analysis
About the Technology Sector
Companies engaged in the design, development, and support of computer operating systems and applications. This sector also includes companies that make computer equipment, data storage products, networking products, semiconductors, and components. Companies in this sector include Apple, Microsoft, and IBM.
The Technology sector groups related businesses that share similar economic characteristics, market dynamics, and competitive forces. By analyzing stocks within this sector, you can compare companies on a more level playing field—making it easier to identify which businesses offer the best value for your investment dollars.
Understanding sector performance helps you evaluate whether individual stocks are cheap or expensive relative to their peers. A P/E ratio that looks high in one sector might be a bargain in another. This context is essential for value investors seeking to calculate realistic expected returns.
Technology Stocks: Value Analysis
Below are the stocks we track in the Technology sector, with key value investing metrics. If you have special knowledge about this sector, you have an advantage—use these metrics to find stocks that may be trading below their intrinsic value.
| Company | Current Price | Current Price Discount 10 years |
|---|---|---|
| Qorvo ( QRVO) |
$117.97 | none |
| Thermo Fisher Scientific (TMO) |
$675.00 | none |
| Inovalon Holdings (INOV) |
$37.37 | none |
| Telefonaktiebolaget LM Ericsson (publ) (ERIC) |
$9.53 | none |
| Digimarc Corporation (DMRC) |
$4.91 | none |
| Blink Charging Co. (BLNK) |
$0.58 | none |
| Coherent (COHR) |
$295.83 | none |
| Computer Task Group, Incorporated (CTG) |
$0.00 | none |
| Take-Two Interactive Software (TTWO) |
$201.44 | none |
| Arista Networks (ANET) |
$206.55 | none |
| STMicroelectronics N.V. (STM) |
$51.93 | none |
| First Solar (FSLR) |
$177.71 | none |
| HP (HPQ) |
$31.30 | none |
| NCR Corporation (NCR) |
$0.00 | 4.2% |
| Senseonics Holdings (SENS) |
$10.00 | none |
| AMETEK (AME) |
$250.74 | none |
| Alphabet (GOOGL) |
$343.92 | 14.5% |
| Xperi Corporation (XPER) |
$5.56 | none |
(MIPS) |
$0.00 | none |
| ClearOne (CLRO) |
$4.22 | none |
| Cisco Systems (CSCO) |
$109.51 | none |
| Astrotech Corporation (ASTC) |
$6.13 | none |
| Analog Devices (ADI) |
$375.72 | none |
(PWAV) |
$0.00 | none |
| Twilio (TWLO) |
$243.84 | none |
| WESCO International (WCC) |
$339.32 | none |
| Bio-Rad Laboratories (BIO) |
$376.41 | none |
| Liquid Media Group Ltd. (YVR) |
$0.00 | none |
| ADTRAN (ADTN) |
$7.20 | none |
| Skyworks Solutions (SWKS) |
$88.76 | none |
| Danaher Corporation (DHR) |
$211.81 | none |
| Plantronics (PLT) |
$12.38 | 14.6% |
| Tessera Holding Corporation (TSRA) |
$0.00 | none |
| JinkoSolar Holding Co., Ltd. (JKS) |
$10.39 | none |
| Teradata Corporation (TDC) |
$28.89 | 19.8% |
| Ocean Thermal Energy Corporation (CPWR) |
$0.00 | none |
| Zoom Video Communications (ZM) |
$90.90 | none |
| Baidu (BIDU) |
$89.93 | 71.0% |
| ACI Worldwide (ACIW) |
$50.27 | none |
| Aehr Test Systems (AEHR) |
$96.93 | none |
| Paylocity Holding Corporation (PCTY) |
$144.42 | none |
| Sanmina Corporation (SANM) |
$209.47 | none |
| Hewlett Packard Enterprise Company (HPE) |
$61.75 | none |
(GCOM) |
$0.00 | none |
| Hubbell Incorporated (HUBB) |
$457.49 | none |
| AudioCodes Ltd. (AUDC) |
$10.45 | none |
| Xunlei Limited (XNET) |
$4.95 | none |
| NXP Semiconductors N.V. (NXPI) |
$227.99 | none |
| Knowles Corporation (KN) |
$35.55 | none |
| Okta (OKTA) |
$182.37 | none |
| Agilent Technologies (A) |
$161.94 | none |
| HUYA (HUYA) |
$2.07 | none |
(OCZ) |
$0.00 | none |
| Formula Systems (1985) Ltd. (FORTY) |
$119.20 | none |
| Schmitt Industries (SMIT) |
$0.01 | none |
| RF Industries, Ltd. (RFIL) |
$8.01 | none |
| Energous Corporation (WATT) |
$12.21 | none |
| Adobe (ADBE) |
$249.52 | none |
| Fastly (FSLY) |
$27.42 | none |
| Silicom Ltd. (SILC) |
$48.73 | none |
| TTM Technologies (TTMI) |
$117.97 | none |
| Neonode (NEON) |
$0.82 | none |
| Varex Imaging Corporation (VREX) |
$18.49 | none |
| Illumina (ILMN) |
$239.62 | none |
| Intuit (INTU) |
$303.19 | none |
| SAP SE (SAP) |
$209.22 | none |
| Universal Display Corporation (OLED) |
$77.98 | none |
| CEVA (CEVA) |
$32.25 | none |
| Infosys Limited (INFY) |
$10.82 | none |
| ETFMG Travel Tech ETF (AWAY) |
$17.35 | none |
| Momo (MOMO) |
$4.99 | none |
| Simulations Plus (SLP) |
$18.44 | none |
| Diebold Nixdorf, Incorporated (DBD) |
$63.20 | none |
| Cognizant Technology Solutions Corporation (CTSH) |
$59.87 | none |
| Benchmark Electronics (BHE) |
$75.40 | none |
| ePlus inc. (PLUS) |
$91.10 | none |
| TransAct Technologies Incorporated (TACT) |
$5.10 | none |
(MOLX) |
$0.00 | none |
| Globant S.A. (GLOB) |
$35.59 | none |
| StoneCo Ltd. (STNE) |
$9.71 | none |
| Cars.com (CARS) |
$11.14 | none |
| Harvard Bioscience (HBIO) |
$7.95 | none |
| Comtech Telecommunications Corp. (CMTL) |
$1.50 | 92.5% |
| Cesca Therapeutics (KOOL) |
$14.68 | none |
| Microchip Technology Incorporated (MCHP) |
$73.27 | none |
| Everbridge (EVBG) |
$0.00 | none |
| Upland Software (UPLD) |
$3.67 | none |
| Methode Electronics (MEI) |
$13.27 | none |
| Sunrun (RUN) |
$8.79 | none |
(CBE) |
$0.00 | none |
| Itron (ITRI) |
$92.43 | none |
| Fabrinet (FN) |
$388.55 | none |
| Nokia Corporation (NOK) |
$10.68 | none |
| Flex Ltd. (FLEX) |
$108.51 | none |
(BBND) |
$0.00 | unknown |
| Synopsys (SNPS) |
$384.97 | none |
| Allied Motion Technologies (AMOT) |
$0.00 | none |
| MiX Telematics Limited (MIXT) |
$0.00 | none |
| Pacific Biosciences of California (PACB) |
$1.37 | none |
| Applied Materials (AMAT) |
$444.57 | none |
| Evolving Systems (EVOL) |
$0.41 | none |
| Mesa Laboratories (MLAB) |
$131.87 | none |
| FactSet Research Systems (FDS) |
$284.10 | none |
| Vicor Corporation (VICR) |
$222.72 | none |
| International Business Machines Corporation (IBM) |
$231.93 | none |
| Splunk (SPLK) |
$0.00 | none |
(DBD ) |
$63.20 | none |
| PagSeguro Digital Ltd. (PAGS) |
$9.26 | none |
| QuickLogic Corporation (QUIK) |
$10.72 | none |
| CSP (CSPI) |
$7.55 | none |
| Geospace Technologies Corporation (GEOS) |
$5.10 | none |
| NVIDIA Corporation (NVDA) |
$222.27 | none |
| LG Display Co., Ltd. (LPL) |
$2.91 | 100.0% |
| Shutterstock (SSTK) |
$4.54 | 15.6% |
| Demand Brands (DMAN) |
$0.00 | none |
| Rambus (RMBS) |
$87.60 | none |
| Novanta (NOVT) |
$133.14 | none |
| ChinaNet Online Holdings (CNET) |
$1.39 | none |
| Daqo New Energy Corp. (DQ) |
$12.07 | none |
| ON Semiconductor Corporation (ON) |
$69.98 | none |
(RIMG) |
$0.00 | none |
| Cubic Corporation (CUB) |
$10.87 | 66.5% |
| Taiwan Semiconductor Manufacturing Company Limited (TSM) |
$434.67 | none |
| EPAM Systems (EPAM) |
$114.00 | none |
| Digi International (DGII) |
$72.13 | none |
| Corsair Gaming (CRSR) |
$13.51 | none |
| Ultralife Corporation (ULBI) |
$6.47 | none |
| Nutanix (NTNX) |
$59.01 | none |
| United Microelectronics Corporation (UMC) |
$19.03 | none |
| CACI International Inc (CACI) |
$497.75 | none |
| Teradyne (TER) |
$319.41 | none |
| Veeva Systems (VEEV) |
$203.78 | none |
| Amphenol Corporation (APH) |
$150.31 | none |
| SPS Commerce (SPSC) |
$73.39 | none |
| FormFactor (FORM) |
$106.20 | none |
| Lumentum Holdings (LITE) |
$713.94 | none |
| WidePoint Corporation (WYY) |
$10.17 | none |
| Clearfield (CLFD) |
$30.26 | none |
| American Software (AMSWA) |
$0.00 | none |
| Aspen Technology (AZPN) |
$0.00 | none |
| Avantor (AVTR) |
$13.67 | none |
| Amkor Technology (AMKR) |
$42.73 | none |
| Blackbaud (BLKB) |
$45.50 | none |
| Oracle Corporation (ORCL) |
$117.74 | none |
| Waters Corporation (WAT) |
$379.48 | none |
| Autodesk (ADSK) |
$245.25 | none |
| Lattice Semiconductor Corporation (LSCC) |
$112.96 | none |
| Alphabet (GOOG) |
$335.76 | 52.5% |
| Roper Technologies (ROP) |
$408.07 | none |
| TE Connectivity Ltd. (TEL) |
$206.95 | none |
| Advanced Energy Industries (AEIS) |
$252.49 | none |
| AXT (AXTI) |
$68.67 | none |
| Rockwell Automation (ROK) |
$459.39 | none |
| Aviat Networks (AVNW) |
$20.45 | none |
| Motorola Solutions (MSI) |
$434.20 | none |
| Microsoft Corporation (MSFT) |
$390.54 | none |
| Agilysys (AGYS) |
$113.69 | none |
| Gravity Co., Ltd. (GRVY) |
$61.55 | none |
| Texas Instruments Incorporated (TXN) |
$271.30 | none |
| Black Knight (BKI) |
$0.00 | none |
| Altair Engineering (ALTR) |
$0.00 | 46.1% |
| salesforce.com, inc. (CRM) |
$188.38 | none |
| TripAdvisor (TRIP) |
$14.58 | 8.8% |
| Cohu (COHU) |
$55.00 | none |
| SYNNEX Corporation (SNX) |
$248.68 | none |
| Avid Technology (AVID) |
$0.00 | none |
| VeriSign (VRSN) |
$290.92 | none |
| NetApp (NTAP) |
$173.23 | none |
| QUALCOMM Incorporated (QCOM) |
$155.68 | none |
| F5 Networks (FFIV) |
$386.95 | none |
| Advanced Micro Devices (AMD) |
$429.56 | none |
| Ingersoll Rand (IR) |
$84.61 | none |
| Cognex Corporation (CGNX) |
$59.15 | none |
| Intel Corporation (INTC) |
$81.88 | none |
How to Invest in Technology Stocks
Sector-Specific Considerations
When evaluating Technology companies, consider these key factors:
- Sector fundamentals: Is this sector growing, mature, or declining? Growth prospects affect reasonable earnings forecasts.
- Economic sensitivity: How does this sector perform in different economic conditions? Understanding cyclicality helps you time purchases.
- Competitive dynamics: Are barriers to entry high or low? Strong moats protect profits and justify premium valuations.
- Regulatory environment: Does government policy significantly impact this sector? Regulatory changes can create risks or opportunities.
- Capital intensity: Does the business require heavy capital investment? Capital-light businesses often generate better returns.
✓ Sector Analysis Checklist
- Compare P/E ratios within the sector
- Look for strong free cash flow generation
- Assess debt levels relative to peers
- Evaluate dividend sustainability
- Check management track record
- Calculate margin of safety
Common Sector Pitfalls
- Chasing last year's hot sector
- Ignoring sector-wide headwinds
- Overpaying for market leaders
- Neglecting competitive threats
- Failing to diversify across sectors
- Not understanding the business model