The Upward Trend in Tech Stocks May Not Be Over Yet

If you think the tech train has left the station, think again.

The trajectory of bread-and-butter technology stocks during the past twelve months has been very consistent. An impressive 88 percent of the components in the S&P 500 Tech Index are now trading above their respective 200-day moving averages. No spikes here, just a steady rise over the past year:

Chris Verrone, a strategist at Strategas Research Partners who pointed to the trend, believes the breadth of the advance suggests there will be further gains. I agree, especially since just 46 percent of investors are bullish, according to the American Association of Individual Investors (AAII). While plenty of investors are still waiting for the train, the good news for reluctant travelers is that tickets are still cheap. We ranked companies by their 2013 price-to-equity ratio and found a surprisingly high number of firms trading at below market multiples:

For those looking to pay a little more:

Also note this group of 16 tech stocks has rallied 36 percent so far this year, significantly ahead of the S&P 500. They're cheaper, they're trending higher and they're winning.

For investors willing to pay slightly more, here are three additional companies trading below 20x which are growing earnings at least 20 percent: Juniper Networks Inc. (JNPR), Qualcomm Inc. (QCOM), Total System Services Inc. (TSS).

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