Technological stocks have been one of the best performances in the last 15 years. The technological sector has constantly surpassed the broad American market since the consequences of the financial crisis of 2008, with periods especially strong in 2014-2021 and 2023-2024. Technological actions usually work well during economic expansions and periods of low interest rates, which stimulates the widespread adoption of technological advances. During these periods, technology companies usually trade with hyper-cost valuations, which reflect strong growth opportunities. Thus, many investors believe that they are too overrated, avoid exposure to them, and thus the yields are lost. The key point when it comes to technological stocks is that their assessments are instantaneously released with the slightest uncertainty and macroeconomic agitation, which means that the best time to acquire technological actions is when they release and when fear dominates the market.
We believe that we are currently in a timely manner to increase exposure to technology, because it is the lowest sector. Yardeni’s graphics show that S&P information technology is currently listed at 24.4 forward p/e, well below the peak of the end of 2024 around 30, marking a decrease of almost 20% of the ratings (by comparison, the valuation of the large market hired only 10%). Technological stocks have not been so cheap since 2023, when artificial intelligence megatrend had just proliferated. In addition, the same source showed that the sector has experienced 2 consecutive quarters of negative reviews in the expectations of gain, which means that Wall Street analysts already have a short -term head price, reducing the possibilities of negative surprises in the near future. That is, the best possible scenario to buy is when both Wall Street and the market are pessimistic, which translates into weak expectations and cheap ratings, and this is exactly what seems to happen to the technological sector right now.
In short, we came to the conclusion that the prices of technological actions are lower now. The only question to answer is whether the macroeconomic background will be favorable enough to facilitate a new bull race for the technology sector. First, as we have mentioned earlier, technological actions prosper in a low rate environment: recent comments from a federal reserve officer suggest higher odds than interest rates will be reduced until June. As a result, the returns of the United States Government’s maturity to the United States maturity fell significantly last week, in anticipation of lower rates. This increases the likelihood that technological ski lifts will disassociate, and companies will spend more in AI, cloud computing, cybersecurity and other technological projects that require great cash and are sensitive to funding costs. We are also pleased to find the confirmation of our hypothesis of leading consultants such as Deloitte. The following is a fragment of its recent perspective report of the 2025 technology industry:
“ Despite recent uncertainty and economic turbulence, the technology industry seems to be played for growth by 2025, assisted by augmented TI spending, AI investments, and a renewed approach to innovation.These analysts project that global computer expense will grow 9.3% by 2025, with the data center and software segments that grow on double rates. 2028. Although the tendency of technological dismissal persisted by 2024, the reductions seemed to slow down compared to 2023. “
That said, the current market configuration seems extremely favorable to invest in technological stocks that could recover part or all lost value during the recent Trump tariff agitation. With fare exceptions granted to electronic products, and President Trump thinks of the possibility that China’s rates will be of 145%unsustainable, the prospects of the technology sector are becoming brighter.
Flywire Corporation (Flyw): Among large -amount technological shares to buy according to coverage funds
A digital tablet that presents several payment options along with an educational conference on the advantages of various capabilities.
To collect our list of technology actions of overload, we have used a screen to identify the stocks of the technological sector that have a relative force index (RSI) below 40. Then we compared the list with the database owned by Insider Monkey of the property of coverage funds and included in the article the 11 stocks with the largest number of coverage that the actions have, Ascending.
Why are we interested in the stocks that cover the funds? The reason is simple: our research has shown that we can overcome the market by imitating the best stock options for the best coverage funds. The strategy of our quarterly bulletin selects 14 stocks of small layers and large layers each quarter and has returned 373.4% since May 2014, surpassing its reference point at 218 percentage points (Check out more details here)).
RSI: 39.36
Number of coverage fund holders: 34
Flywire Corporation (NASDAQ: FLOW) is a global pay and software payment company. It offers a proprietary payment platform and a global payment network, facilitating cross -border transactions in more than 140 coins to more than 240 countries. Flyw’s basic customers are in sectors such as education, health care, travel and B2B.
Flywire Corporation (Nasdaq: Floww) achieved a growth in the revenue of 24% in 2024 and improved Ebitda margins adjusted at 540 basic points, despite the important benefits of changes in student visa policy. The company added more than 800 new customers by 2024, exceeding the additions of 2023, bringing its total customer base to approximately 4,500 worldwide. The travel vertical emerged as its second largest revenue segment, showing a particularly strong growth in the Emea and APAC regions. However, the company faced significant challenges in its educational business, with a decrease in two digits in the broadcast of students’ visas in their large geographical markets of 4 large, especially the serious impacts on Canada and Australia, where they expect revenue decreases of approximately 30% by 2025.
In response to these challenges, Flywire Corporation (NASDAQ: Flow) announced several strategic initiatives, including Sertifi’s acquisition to strengthen its travel vertical, which helps more than 20,000 hotel locations to automate key work flows worldwide. The company also carries out a comprehensive review of the business portfolio focused on basic points such as the complex processing of high value payments, the global network of payments and verticalized software. In addition, it announced a restructuring that affects approximately 10% of its labor force as part of its operational efficiency initiatives. Despite these challenges, management continues to trust its ability to adapt, projecting a 10% to 14% growth of FX by 2025, which makes Flyw one of the best actions on our list.
Generally, Flyw occupies 8th place In our list of higher technological stocks to buy according to the coverage funds. Although we recognize Flyw’s potential as an investment, our conviction lies in the belief that the AI actions have a greater promise to obtain higher yields and do it in a shorter period. There is an AI stock that increased since the beginning of 2025, while the popular AI actions lost around 25%. If you are looking for an Ia stock that is more promising than Flyw but you market less than five times, see our report on this Ia stock cheap.
