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.
Tyler Technologies, Inc. (TYL): Between overeating technological actions according to coverage funds
A foreground of a business man in corporate costumes discussing financial management solutions with a client.
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: 35.92
Number of coverage fund holders: 44
Tyler Technologies, Inc. (NYSE: TYL) offers integrated software and technology services for the public sector. Its portfolio of products includes solutions for court and justice, public security, real estate and taxation, financial management, authorization and licenses, registration management and K-12 education. The company offers local and local deployments, with a strategic collaboration with Amazon Web Services for cloud accommodation services.
Tyler Technologies, Inc. (NYSE: TYL) reported strong results from the first quarter 2025, exceeding the expectations between revenue and metrics of key profitability with a total growth of the two -digit revenue driven by robust subscription income. SAAS revenue grew 21%, which marked its 17th consecutive quarter of growth of 20% or more, while transactions based revenue increased by 18.5% due to higher volumes of transactions and increased new services. The company’s non-GAAP operating margin expanded to 26.8%, benefiting from the efficiencies of cloud operations, a change to higher-margin saas income and favorable tendencies of operational expenses.
Despite the unpredictable macro conditions, Tyler Technologies, Inc. (NYSE: TYL) has a positive perspective, highlighting the stability of its business model and the resilience of the public sector market. At least 44 coverage funds showed conviction and owned Tyl Stock at the end of the fourth quarter of 2024, making it one of the best purchase actions according to the coverage funds.
The public sector market remains active with stable RFP and sales demonstration activity at high levels, although some hiring processes have been slowed due to consulting -based processes and additional scrutiny of the macro environment. The company’s leadership expressed its confidence in its position, emphasizing that local government revenue is mainly funded by taxes on reliable property and public services revenue, while state -level transactions revenue is largely autonomous through the fees of users who generally have no effect on economic conditions.
Generally, Tyl Rankes 5th In our list of higher technological stocks to buy according to the coverage funds. Although we recognize Tyl’s potential as an investment, our conviction lies in the belief that the AI actions have a greater promise to obtain higher yields and to 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 Tyl but sells less than five times, see our report on this Ia stock cheap.
