Barclays analysts report that US tech stocks are currently trading at significant premium

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