Despite the recent stock market pullback, technology stocks continue their strong showing in 2010 (see our recent post about following the sector using the MarketGrader Technology index). Assuming many of our subscribers have benefited form the sector’s momentum, we thought it would be a good idea to point out a few stocks that may have gotten ahead of themselves, based on the spread between their ‘Growth’ and ‘Value’ profile grades. Please refer to our previous blog post for more on how to use this popular MarketGrader.com feature.

Today MarketGrader.com follows 948 technology stocks, 227 of which we rate a ‘Buy.’ Of these high rated stocks, 123 have a higher overall grade when calculated based on their ‘Growth’ profile than when calculated based on their ‘Value’ profile. This divergence, or ‘spread’ is relatively insignificant for many stocks when the number is in the single or low double digits. However, when the spread is, say, upwards of 15 or 20 points, this may be a sign of a stock getting ahead of the company’s fundamentals, irrespective of its growth rate. Therefore, of the 123 stocks with a higher Growth than Value profile grade in the technology sector, 27 have a spread above 15 and 16 have a spread above 20. We’d like to highlight in this post the ten highest spreads, listed below: