Technology stocks have enjoyed an impressive run over the past decade and are often viewed as expensive as a group. However, Validea’s comprehensive analytical framework helps identify pockets of value within this sector. By evaluating stocks through 22 distinct investment strategies pioneered by legendary investors like Warren Buffett, Peter Lynch, and Martin Zweig, Validea’s system uncovers technology companies that combine strong fundamentals with reasonable valuations.
This methodical approach reveals technology businesses that possess the qualities highly prized by celebrated investors: solid balance sheets, consistent cash flows, sustainable competitive advantages, and attractive valuations relative to their growth prospects and market position. Even in a sector known for premium pricing, Validea’s system can pinpoint tech companies trading at compelling values compared to their fundamental strength.
For long-term investors, these opportunities can represent a chance to participate in the technology sector’s growth potential without paying the premium typically associated with high-profile tech names. By focusing on businesses that meet stringent criteria across multiple proven investment methodologies, investors can build technology exposure with a margin of safety. Rather than avoiding technology stocks altogether due to valuation concerns, Validea’s approach demonstrates that disciplined, fundamentals-based analysis can still uncover worthwhile investments even within sectors that appear fully valued at first glance.
Here are the top 10 technology stocks for May of 2025 ranked using Validea’s guru models.
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| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield | Long-Term EPS Growth |
|---|---|---|---|---|---|---|---|---|---|---|
| IBEX | IBEX LTD | $30.55 | $409 | 14.4 | 0.8 | 94 | 3.7 | 7.4 | 0.0% | 48.0% |
| TSM | TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR) | $176.52 | $813,156 | 21.1 | 7.8 | 79 | 6.1 | 12.4 | 0.4% | 25.2% |
| ENS | ENERSYS | $93.11 | $3,671 | 11.5 | 1.0 | 55 | 2.0 | 8.6 | 1.0% | 26.7% |
| QCOM | QUALCOMM INC | $145.18 | $159,290 | 14.8 | 3.8 | 43 | 5.8 | 12.5 | 2.3% | 18.7% |
| ACMR | ACM RESEARCH INC | $22.19 | $1,417 | 14.2 | 1.8 | 49 | 1.5 | 10.0 | 0.0% | 49.9% |
| RDVT | RED VIOLET INC | $45.71 | $638 | 75.3 | 8.0 | 94 | 6.9 | 34.5 | 0.0% | |
| PLAB | PHOTRONICS INC | $19.45 | $1,236 | 8.3 | 1.4 | 33 | 1.1 | 4.3 | 0.0% | 36.7% |
| AMAT | APPLIED MATERIALS INC | $155.61 | $126,424 | 20.4 | 4.6 | 40 | 6.8 | 18.7 | 1.0% | 20.2% |
| GWW | WW GRAINGER INC | $1,037.06 | $49,820 | 26.5 | 2.9 | 69 | 14.3 | 22.3 | 0.8% | 26.1% |
| CLS | CELESTICA INC | $93.05 | $10,753 | 26.0 | 1.1 | 93 | 6.9 | 18.7 | 0.0% | 66.5% |
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