Barclays analysts say that US tech stocks are now trading at nearly a 25% premium.
Main points from the note:
- November’s historically strong start led to substantial multiple expansion in tech
- This has left the sector group trading at an even higher premium to long-term median P/E than it was at the end of 3Q
- Large tech names are among the few seeing EPS estimates move up
- While their share prices are increasing even faster.
- tech sector as a whole is now trading at the 95th percentile of its 10-year range