Over the last decade, technology stocks have delivered exceptional returns but often carry high valuations that may discourage investors focused on value. Yet Validea’s robust analytical system shows that worthwhile investment opportunities remain in this apparently overvalued sector through the application of 22 proven investment approaches developed by renowned investors such as Warren Buffett, Peter Lynch, and Martin Zweig.
This disciplined methodology pinpoints technology firms that marry solid fundamentals with sensible pricing. The system targets companies possessing the attributes that distinguished investors have traditionally valued: robust financial health, reliable cash generation, enduring competitive moats, and prices that appropriately reflect growth potential and market standing.
Instead of completely shunning technology investments due to pricing worries, Validea’s structured process shows that methodical, fundamentals-driven evaluation can reveal attractive investment cases even in sectors notorious for elevated valuations. The platform’s diversified strategy framework allows investors to gain technology exposure while building in risk mitigation through selective stock picking.
This approach allows investors to capture the technology sector’s expansion possibilities while maintaining prudent investment standards, demonstrating that comprehensive analysis and established methodologies can uncover valuable opportunities where others perceive only expensive securities.
Here are the top 10 technology stocks for August 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 |
|---|---|---|---|---|---|---|---|---|---|
| PAYC | PAYCOM SOFTWARE INC | $217.18 | $12,218 | 29.4 | 6.2 | 79 | 6.8 | 21.2 | 0.7% |
| ENS | ENERSYS | $98.33 | $3,684 | 11.2 | 1.0 | 57 | 2.0 | 8.1 | 1.0% |
| AMAT | APPLIED MATERIALS INC | $161.76 | $129,808 | 19.3 | 4.5 | 32 | 6.7 | 17.9 | 1.0% |
| GWW | WW GRAINGER INC | $969.93 | $46,394 | 24.5 | 2.7 | 56 | 12.7 | 20.6 | 0.9% |
| QCOM | QUALCOMM INC | $157.85 | $170,245 | 15.2 | 3.9 | 43 | 6.3 | 12.9 | 2.2% |
| NTES | NETEASE INC (ADR) | $129.22 | $81,822 | 17.4 | 5.4 | 81 | 3.9 | 15.7 | 0.3% |
| TSM | TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR) | $238.88 | $1,017,980 | 25.5 | 9.0 | 79 | 8.1 | 14.2 | 0.0% |
| IBEX | IBEX LTD | $28.76 | $385 | 12.6 | 0.7 | 88 | 3.1 | 7.0 | 0.0% |
| LRCX | LAM RESEARCH CORP | $99.51 | $125,942 | 23.9 | 6.8 | 65 | 12.8 | 21.9 | 0.9% |
| NVMI | NOVA LTD (USA) | $254.36 | $7,478 | 34.7 | 9.3 | 62 | 6.8 | 29.5 | 0.0% |
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