With valuation concerns, tech stocks have been crushed so far in 2022. But one popular investing metric shows that the selloff may have come too far, too fast — and that tech stocks, contrary to popular belief, are now cheap and primed for a huge comeback.

In other words, it’s time to buy the dip in tech.

Here’s the story.

Morningstar is one of the oldest, most widely respected financial research firms in existence. Fundamentals is its “thing.” Morningstar analyzes stocks, assess their fundamentals, and assigns a “fair value estimate” for them based on those fundamentals. It then rates stocks — from 1-star to 5-star — based on how the current price differs from the fair value estimate.

When the stock is fairly valued, it gets a 3-star rating. Super undervalued stocks get a 5-star rating, and super overvalued stocks get a 1-star rating.

Simple enough.

Well, back in the first quarter of 2021, only about 10% of tech stocks were 4- or 5-star stocks, according to Morningstar — meaning only about 10% of tech stocks were undervalued. Around 40% were considered overvalued at the time, with a 1- or 2-star rating.

Those ratios speak to a tech market that’s too frothy and needs to correct lower.

And it’s done just that. In the wake of that correction, we’re looking at a completely different valuation picture today.

The percent of undervalued 4- and 5-star tech stocks has risen sharply to 30%. And the percent of overvalued 1- and 2-star stocks has plunged to below 25%.

A year ago, most tech stocks were overvalued and almost none undervalued. Today, however, most are undervalued and almost none are overvalued.

Buy Those Tech Stocks

The investment implication, of course, is that it’s time to buy the dip in tech.

One of the best ways to go about buying this dip would be — sticking with the Morningstar ratings — to buy 5-star rated tech stocks.

We went through that list. There’s six that we would consider true tech stocks. And of those six 5-star rated stocks, we already own five of them in our flagship investment research advisory, Innovation Investor.

In other words, if you want to buy the dip in tech with the most attractively valued stocks, your journey should start with us.

In Innovation Investor, we currently own what we believe to be the next generation of tech giants — the next Amazon (NASDAQ:AMZN), the next Microsoft (NASDAQ:MSFT), the next Facebook…

They’re all in our portfolio. And right now, you have an opportunity to buy those future mega-winners at prices you may never see again.

The choice is yours. Take a shot at making millions by buying the dip in tomorrow’s tech giants. Or let this once-in-a-lifetime opportunity pass you up.

Still with me? I thought so. Click here to find out more.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.