Michael Kantrowitz: Tech is not the only place to find stocks with strong fundamentals

Investment Strategy - Piper Sandler focuses on stocks outside the tech sector with similar attributes, such as high earnings growth, profitability, and strong balance sheets [2] - The recipe for outperformance lies in companies with strong fundamentals, applicable across market caps [2] - Diversification is key, rather than concentrating investments in a few mega-cap stocks [6] - Investing in the most profitable names across all 11 sectors has outperformed the tech sector in recent years [5] Tech Sector Analysis - The tech sector offers multiple avenues for outperformance [5] - Discrepancies exist in performance among different groups within tech, such as software and semiconductors [3] - The distinction between hardware and software remains relevant, especially concerning AI disruption [4] Macroeconomic Factors - Scale provides companies with advantages like better access to capital and cost management [8] - Small caps have recently outperformed due to market pricing in interest rate cuts [8] - Small cap sales estimates are still falling, suggesting the outperformance is not due to a broad macro pickup [9]