A few fundamentally good tech stocks currently trade at premium valuations because of the current low-interest rate environment. But considering their fundamental strength and the industry’s growth prospects, these stocks appear to have plenty of upside remaining. Even though these stocks can be costly, we believe they have a lot of upside. Endava (NYSE: Fabrinet Based on their fundamental strength, (NYSE:) may see a price increase. So, let’s look closer at these names.Even though labor shortages, global supply chain constraints, and increased freight and shipping costs could mar the technology industry’s growth in the near term, tech stocks are gaining attention amid the continuing low-interest-rate environment.

Investors’ renewed interest in tech stocks is evidenced by the Technology Select Sector SPDR ETF’s (XLK) 6.7% returns over the past month. A number of tech stocks are experiencing stretched valuations due to the extremely loose monetary policy. Nevertheless, the ongoing digital transformation and increasing use of cloud computing, artificial intelligence (AI), and other advanced technologies should keep driving the technology industry’s growth. GoRemotely estimates that by 2021, the market for tech will be worth $5 trillion.

We believe it would be prudent to place a bet on Endava plc, Fabrinet (FN) Despite their high valuations these stocks could still have a lot of upside due to their fundamental strength. These stocks are rated ‘Buy’ in our proprietary POWR Ratings system.

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