5 Rare Fairly Valued Companies in the Technology Services Sector: Part 17

by Chuck Carnevale of F.A.S.T. Graphs, 4/30/19

Throughout this series I have referenced the idea that the stock market in the general sense may be overvalued, or at least fully valued. On the other hand, I have also pointed out that it is a market of stocks and not a stock market. In that vein, I have suggested that there are many companies in virtually every sector that are either attractive or undervalued despite general market levels. However, I have also suggested that there are certain sectors such as the Finance Sector where low valuations were abundant.

In contrast, the Technology Services Sector covered in this article is a sector where overvaluation is rampant. In other words, this is currently a hot sector where sound valuation has been thrown out the window in favor of what I can only describe as hype and speculation. Importantly, it has long been my contention that you can overpay for even the best companies. In my humble opinion, this is precisely what is happening in the Technology Services Sector with names such as Autodesk Inc., Microsoft, Accenture, Adobe and many more too numerous to mention. Although these are all great companies, I believe they are also all great companies that are being significantly overvalued by the market. With this article, I will be covering only 5 that are not.

A Sector By Sector Review

This is part 17 of a series where I have conducted a simple screening looking for value over the overall market based on industry classifications and subindustry classifications reported by FactSet Research Systems, Inc.

In part 1 found here I covered the Consumer Services Sector. In part 2 found here I covered the Communication Sector. In part 3 found here I covered the Consumer Durables Sector and its many diverse subsectors. In part 4 found here I covered Consumer Nondurables. In part 5 found here I covered companies in the Consumer Services Sector. In part 6 found here I covered the Distribution Services Sector. In part 7 found here I covered the Electronic Technology Sector. In part 8 found here I covered the Energy Minerals Sector. In part 9 found here I covered the Finance Sector. In part 10 found here I covered the Health Services Sector. In part 11 found here I covered the Health Technology Sector. In part 12 found here I covered the Industrial Services Sector. In part 13 found here I covered the Non-Energy Minerals Sector. In part 14 found here I covered the Process Industries Sector. In part 15 found here I covered the Producer Manufacturing Sector. In part 16 found here I covered the Retail Trade Sector.

In this part 17 I will be covering the Technology Services Sector.

In each article in this series, I will be providing a listing of screened research candidates from each of the following industry sectors, the sector I’m covering in this article is marked in green: