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 |
|---|---|---|
| NCR Corporation (NCR) |
$0.00 | 4.2% |
| Neonode (NEON) |
$0.89 | none |
| Sanmina Corporation (SANM) |
$217.03 | none |
| Plantronics (PLT) |
$12.38 | 14.6% |
| Applied Materials (AMAT) |
$535.31 | none |
| LG Display Co., Ltd. (LPL) |
$3.53 | 100.0% |
| ChinaNet Online Holdings (CNET) |
$1.31 | none |
| Paylocity Holding Corporation (PCTY) |
$145.47 | none |
| ePlus inc. (PLUS) |
$86.78 | none |
| Globant S.A. (GLOB) |
$36.26 | none |
| Liquid Media Group Ltd. (YVR) |
$0.00 | none |
| Thermo Fisher Scientific (TMO) |
$585.51 | none |
| Infosys Limited (INFY) |
$11.62 | none |
(BBND) |
$0.00 | unknown |
| Simulations Plus (SLP) |
$18.36 | none |
| StoneCo Ltd. (STNE) |
$9.27 | none |
| Formula Systems (1985) Ltd. (FORTY) |
$109.88 | none |
| Xperi Corporation (XPER) |
$6.50 | none |
| Danaher Corporation (DHR) |
$202.63 | none |
| RF Industries, Ltd. (RFIL) |
$13.45 | none |
| Inovalon Holdings (INOV) |
$38.01 | none |
| Telefonaktiebolaget LM Ericsson (publ) (ERIC) |
$10.17 | none |
| ACI Worldwide (ACIW) |
$52.13 | none |
| Hewlett Packard Enterprise Company (HPE) |
$57.61 | none |
| First Solar (FSLR) |
$217.85 | none |
| STMicroelectronics N.V. (STM) |
$55.79 | none |
| Rambus (RMBS) |
$100.61 | none |
| Knowles Corporation (KN) |
$38.99 | none |
| Coherent (COHR) |
$351.22 | none |
| AudioCodes Ltd. (AUDC) |
$10.14 | none |
(DBD ) |
$69.70 | none |
| Analog Devices (ADI) |
$390.28 | none |
| Daqo New Energy Corp. (DQ) |
$14.24 | none |
| TransAct Technologies Incorporated (TACT) |
$5.00 | none |
| Mesa Laboratories (MLAB) |
$107.64 | none |
| International Business Machines Corporation (IBM) |
$228.85 | none |
| ON Semiconductor Corporation (ON) |
$83.38 | none |
| Skyworks Solutions (SWKS) |
$67.73 | none |
| Ocean Thermal Energy Corporation (CPWR) |
$0.01 | none |
(PWAV) |
$0.00 | none |
| Itron (ITRI) |
$100.61 | none |
| ADTRAN (ADTN) |
$8.65 | none |
| CEVA (CEVA) |
$32.71 | none |
| Everbridge (EVBG) |
$0.00 | none |
| Diebold Nixdorf, Incorporated (DBD) |
$69.70 | none |
| Arista Networks (ANET) |
$201.80 | none |
| SAP SE (SAP) |
$207.84 | none |
| Qorvo ( QRVO) |
$96.04 | none |
| Alphabet (GOOGL) |
$344.00 | 14.4% |
| Twilio (TWLO) |
$228.61 | none |
| Sunrun (RUN) |
$9.83 | none |
| Fastly (FSLY) |
$29.04 | none |
(CBE) |
$0.00 | none |
| Tessera Holding Corporation (TSRA) |
$0.00 | none |
| Vicor Corporation (VICR) |
$253.50 | none |
(GCOM) |
$0.00 | none |
| Shutterstock (SSTK) |
$5.41 | none |
(MOLX) |
$0.00 | none |
| AMETEK (AME) |
$254.17 | none |
| Synopsys (SNPS) |
$413.22 | none |
| Universal Display Corporation (OLED) |
$86.64 | none |
| ETFMG Travel Tech ETF (AWAY) |
$20.09 | none |
| WESCO International (WCC) |
$372.96 | none |
| MiX Telematics Limited (MIXT) |
$0.00 | none |
| Blink Charging Co. (BLNK) |
$0.58 | none |
| Varex Imaging Corporation (VREX) |
$18.46 | none |
(OCZ) |
$0.00 | none |
| HUYA (HUYA) |
$2.28 | none |
| Teradata Corporation (TDC) |
$27.53 | 23.6% |
| Evolving Systems (EVOL) |
$0.41 | none |
| Methode Electronics (MEI) |
$18.08 | none |
| CSP (CSPI) |
$7.90 | none |
| FactSet Research Systems (FDS) |
$276.76 | none |
| NXP Semiconductors N.V. (NXPI) |
$232.72 | none |
| ClearOne (CLRO) |
$4.94 | none |
| Take-Two Interactive Software (TTWO) |
$241.61 | none |
| Cognizant Technology Solutions Corporation (CTSH) |
$56.61 | none |
| Taiwan Semiconductor Manufacturing Company Limited (TSM) |
$430.97 | none |
| Harvard Bioscience (HBIO) |
$6.50 | none |
| Cars.com (CARS) |
$11.86 | none |
(MIPS) |
$0.00 | none |
| Astrotech Corporation (ASTC) |
$8.16 | none |
| Intuit (INTU) |
$335.60 | none |
| Nokia Corporation (NOK) |
$10.78 | none |
| QuickLogic Corporation (QUIK) |
$12.63 | none |
| Cubic Corporation (CUB) |
$10.84 | 66.6% |
| Bio-Rad Laboratories (BIO) |
$355.23 | none |
| Zoom Video Communications (ZM) |
$105.56 | none |
| Illumina (ILMN) |
$193.13 | none |
| Upland Software (UPLD) |
$4.72 | none |
| Momo (MOMO) |
$5.72 | none |
| Silicom Ltd. (SILC) |
$48.65 | none |
| Agilent Technologies (A) |
$148.45 | none |
| Cisco Systems (CSCO) |
$112.90 | none |
| Senseonics Holdings (SENS) |
$8.03 | none |
| EPAM Systems (EPAM) |
$98.73 | none |
| Fabrinet (FN) |
$598.58 | none |
| Comtech Telecommunications Corp. (CMTL) |
$1.67 | 91.6% |
| Okta (OKTA) |
$143.24 | none |
| Hubbell Incorporated (HUBB) |
$504.30 | none |
| JinkoSolar Holding Co., Ltd. (JKS) |
$16.62 | none |
| NVIDIA Corporation (NVDA) |
$225.01 | none |
| HP (HPQ) |
$29.40 | none |
| Flex Ltd. (FLEX) |
$130.00 | none |
| Geospace Technologies Corporation (GEOS) |
$5.77 | none |
| Aehr Test Systems (AEHR) |
$145.61 | none |
| Computer Task Group, Incorporated (CTG) |
$0.00 | none |
| Microchip Technology Incorporated (MCHP) |
$80.26 | none |
| Cesca Therapeutics (KOOL) |
$14.91 | none |
| TTM Technologies (TTMI) |
$140.98 | none |
| PagSeguro Digital Ltd. (PAGS) |
$8.66 | none |
| Benchmark Electronics (BHE) |
$84.17 | none |
| Digimarc Corporation (DMRC) |
$6.78 | none |
| Baidu (BIDU) |
$104.12 | 66.5% |
| Adobe (ADBE) |
$254.04 | none |
| Demand Brands (DMAN) |
$0.00 | none |
(RIMG) |
$0.00 | none |
| Energous Corporation (WATT) |
$14.75 | none |
| Schmitt Industries (SMIT) |
$0.01 | none |
| Novanta (NOVT) |
$168.75 | none |
| Pacific Biosciences of California (PACB) |
$1.21 | none |
| Xunlei Limited (XNET) |
$4.97 | none |
| Splunk (SPLK) |
$0.00 | none |
| Allied Motion Technologies (AMOT) |
$0.00 | none |
| Digi International (DGII) |
$83.34 | none |
| Corsair Gaming (CRSR) |
$12.24 | none |
| Ultralife Corporation (ULBI) |
$7.51 | 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