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 |
|---|---|---|
| Itron (ITRI) |
$97.01 | none |
| International Business Machines Corporation (IBM) |
$234.89 | none |
| Harvard Bioscience (HBIO) |
$8.02 | none |
| Illumina (ILMN) |
$218.22 | none |
| Fastly (FSLY) |
$20.59 | none |
| Ocean Thermal Energy Corporation (CPWR) |
$0.01 | none |
| ClearOne (CLRO) |
$5.09 | none |
| Comtech Telecommunications Corp. (CMTL) |
$1.56 | 92.2% |
| Infosys Limited (INFY) |
$11.70 | none |
| Cars.com (CARS) |
$11.73 | none |
| HP (HPQ) |
$32.64 | none |
| Energous Corporation (WATT) |
$10.73 | none |
| Applied Materials (AMAT) |
$454.71 | none |
| Pacific Biosciences of California (PACB) |
$1.35 | none |
| Inovalon Holdings (INOV) |
$38.12 | none |
| JinkoSolar Holding Co., Ltd. (JKS) |
$11.98 | none |
| Senseonics Holdings (SENS) |
$9.63 | none |
| HUYA (HUYA) |
$2.12 | none |
| Computer Task Group, Incorporated (CTG) |
$0.00 | none |
| WESCO International (WCC) |
$351.46 | none |
| Cisco Systems (CSCO) |
$109.20 | none |
| Universal Display Corporation (OLED) |
$82.33 | none |
| RF Industries, Ltd. (RFIL) |
$10.51 | none |
| Diebold Nixdorf, Incorporated (DBD) |
$68.67 | none |
| STMicroelectronics N.V. (STM) |
$52.24 | none |
| CEVA (CEVA) |
$26.95 | none |
| SAP SE (SAP) |
$215.11 | none |
| ETFMG Travel Tech ETF (AWAY) |
$18.98 | none |
| Skyworks Solutions (SWKS) |
$74.02 | none |
| ADTRAN (ADTN) |
$7.10 | none |
| LG Display Co., Ltd. (LPL) |
$3.30 | 100.0% |
(PWAV) |
$0.00 | none |
| CSP (CSPI) |
$8.09 | none |
| Zoom Video Communications (ZM) |
$101.33 | none |
| Vicor Corporation (VICR) |
$188.55 | none |
| Simulations Plus (SLP) |
$18.43 | none |
| Coherent (COHR) |
$281.86 | none |
| Benchmark Electronics (BHE) |
$72.64 | none |
| TransAct Technologies Incorporated (TACT) |
$5.14 | none |
| Allied Motion Technologies (AMOT) |
$0.00 | none |
| Hewlett Packard Enterprise Company (HPE) |
$52.00 | none |
| Sunrun (RUN) |
$8.89 | none |
(BBND) |
$0.00 | unknown |
| EPAM Systems (EPAM) |
$117.04 | none |
| Everbridge (EVBG) |
$0.00 | none |
| Daqo New Energy Corp. (DQ) |
$12.31 | none |
| Alphabet (GOOGL) |
$338.46 | 15.8% |
| Thermo Fisher Scientific (TMO) |
$613.78 | none |
| Twilio (TWLO) |
$232.98 | none |
| MiX Telematics Limited (MIXT) |
$0.00 | none |
| Globant S.A. (GLOB) |
$39.13 | none |
| Adobe (ADBE) |
$266.51 | none |
| Microchip Technology Incorporated (MCHP) |
$74.17 | none |
| Nokia Corporation (NOK) |
$10.03 | none |
| Sanmina Corporation (SANM) |
$198.47 | none |
| Telefonaktiebolaget LM Ericsson (publ) (ERIC) |
$10.10 | none |
| Synopsys (SNPS) |
$393.84 | none |
| Agilent Technologies (A) |
$150.86 | none |
| Astrotech Corporation (ASTC) |
$7.37 | none |
| First Solar (FSLR) |
$204.45 | none |
| Knowles Corporation (KN) |
$35.49 | none |
| StoneCo Ltd. (STNE) |
$10.11 | none |
| Tessera Holding Corporation (TSRA) |
$0.00 | none |
| Geospace Technologies Corporation (GEOS) |
$5.38 | none |
| AMETEK (AME) |
$237.72 | none |
(CBE) |
$0.00 | none |
| Neonode (NEON) |
$0.92 | none |
| Cognizant Technology Solutions Corporation (CTSH) |
$62.31 | none |
| Cubic Corporation (CUB) |
$10.88 | 66.4% |
| Schmitt Industries (SMIT) |
$0.01 | none |
| Varex Imaging Corporation (VREX) |
$18.51 | none |
| Arista Networks (ANET) |
$193.78 | none |
| Intuit (INTU) |
$332.70 | none |
| Novanta (NOVT) |
$148.36 | none |
| NVIDIA Corporation (NVDA) |
$230.36 | none |
| Xperi Corporation (XPER) |
$5.79 | none |
| Xunlei Limited (XNET) |
$4.88 | none |
| Demand Brands (DMAN) |
$0.00 | none |
| FactSet Research Systems (FDS) |
$301.96 | none |
| Flex Ltd. (FLEX) |
$109.51 | none |
| Paylocity Holding Corporation (PCTY) |
$152.25 | none |
| Cesca Therapeutics (KOOL) |
$14.85 | none |
| Aehr Test Systems (AEHR) |
$86.26 | none |
(MOLX) |
$0.00 | none |
| Mesa Laboratories (MLAB) |
$127.78 | none |
| ACI Worldwide (ACIW) |
$52.95 | none |
| Evolving Systems (EVOL) |
$0.41 | none |
| AudioCodes Ltd. (AUDC) |
$10.15 | none |
| Qorvo ( QRVO) |
$102.84 | none |
| Danaher Corporation (DHR) |
$207.66 | none |
| Hubbell Incorporated (HUBB) |
$460.72 | none |
| Shutterstock (SSTK) |
$5.74 | none |
| Analog Devices (ADI) |
$362.25 | none |
| Plantronics (PLT) |
$12.38 | 14.6% |
(DBD ) |
$68.67 | none |
(OCZ) |
$0.00 | none |
| Formula Systems (1985) Ltd. (FORTY) |
$129.00 | none |
| Momo (MOMO) |
$5.37 | none |
(GCOM) |
$0.00 | none |
| Splunk (SPLK) |
$0.00 | none |
(MIPS) |
$0.00 | none |
| ePlus inc. (PLUS) |
$92.10 | none |
| TTM Technologies (TTMI) |
$125.60 | none |
| Liquid Media Group Ltd. (YVR) |
$0.00 | none |
| NCR Corporation (NCR) |
$0.00 | 4.2% |
| Take-Two Interactive Software (TTWO) |
$214.69 | none |
| Digimarc Corporation (DMRC) |
$5.31 | none |
| Silicom Ltd. (SILC) |
$40.87 | none |
| Bio-Rad Laboratories (BIO) |
$386.11 | none |
(RIMG) |
$0.00 | none |
| NXP Semiconductors N.V. (NXPI) |
$227.84 | none |
| Okta (OKTA) |
$170.60 | none |
| Fabrinet (FN) |
$407.40 | none |
| ChinaNet Online Holdings (CNET) |
$1.27 | none |
| ON Semiconductor Corporation (ON) |
$74.38 | none |
| PagSeguro Digital Ltd. (PAGS) |
$9.73 | none |
| QuickLogic Corporation (QUIK) |
$10.76 | none |
| Teradata Corporation (TDC) |
$28.05 | 22.1% |
| Methode Electronics (MEI) |
$15.69 | none |
| Blink Charging Co. (BLNK) |
$0.59 | none |
| Upland Software (UPLD) |
$3.70 | none |
| Taiwan Semiconductor Manufacturing Company Limited (TSM) |
$428.91 | none |
| Baidu (BIDU) |
$99.47 | 68.0% |
| Rambus (RMBS) |
$85.46 | none |
| Digi International (DGII) |
$69.36 | none |
| Corsair Gaming (CRSR) |
$12.72 | 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% |
| 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 |
| 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