High-flying tech companies have gained attention for their robust returns in recent years, but those strong gains have also pushed market valuations higher. When excluding FANG stocks (Facebook, Amazon, Netflix, and Google parent Alphabet) plus the two largest technology companies (Apple and Microsoft), the U.S. does not look as overvalued as it may first appear. In fact, its price-to-earnings ratio becomes comparable to international markets, which have been touted for having more bargain opportunities during the recent expansion. Tech still maintains strong growth potential, but investors should remember that aggregate numbers don’t tell the entire story, and fundamental research can be used to uncover stocks still under the radar.

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