It has been more than 12 years since the Nasdaq Composite index made its first climb above 3000, an eon in stock-market terms.

Now, the Nasdaq is once again poised to cross that psychologically important marker. This time, though, the technology-heavy stock index, like many of the traders who tracked it back then, is an older, wiser and arguably frumpier version of its former self.

In November 1999, the technology world was ablaze with an investmentfrenzy that favored unprofitable, unproven companies that were valued for their potential 'clicks' and 'eyeballs.'

Now, the biggest 100 Nasdaq-listed companies look a lot more like their more sedate counterparts on the Dow Jones Industrial Average.

They sit on mounds of cash. Almost half of them pay dividends. They raise money in the bond market, carrying, in aggregate, 10 times the amount of debt they did in 1999. And their price-to-earnings ratios are, well, average.

For many investors, that's a much better place to be.

'The composition of the companies is much more stable, the earnings are much more reliable and the multiple being applied against those earnings is much more rational,' says Jim McDonald, chief investment strategist at Chicago-based Northern Trust Corp., which has $663 billion under management.

As in 1999, tech stocks are once again outpacing the rest of the market. The Nasdaq, which closed Friday at 2988.34, is up almost 15% this year, compared with a 5.8% gain for the Dow.

Few dare to say the Nasdaq is in position to challenge its all-time high; the index peaked at 5048.62 on March 10, 2000, almost exactly 12 years ago, before falling back below 3000 in December of that year. But investors believe tech stocks still have further to climb.

They point to the growing U.S. economy as a support for tech stocks. Moreover, many tech firms used the recent recession to trim costs, leaving them with leaner operations. Strategas Research Partners calls technology 'a sector for all seasons.' In good times, investors crave tech stocks' growth potential. In times of weakness, Strategas argues, they generate business from helping other companies squeeze out efficiencies.

Most important, tech stocks now trade at much more grounded valuations that reflect the maturity of many Nasdaq companies. The Nasdaq Composite now trades at about 23 times the previous year's earnings, compared with 78 times trailing earnings in November 1999, according to stock-market research firm Birinyi Associates.

'By the metrics of the trucking industry, or the paper and forest-products industry or any other 'old economy' industry, we'd say it's pretty cheap,' says Phil Orlando, chief equity strategist for Federated Investors Inc. in New York and, during the tech bubble, the manager of a large-cap growth fund. 'There's nothing frothy about this.'

To be sure, some argue there are signs of exuberance in certain pockets of the tech sector. For some, the excitement that surrounded initial public offerings by the likes of social-media newcomers Zynga Inc. and Groupon Inc., and anticipation for Facebook Inc.'s public debut, are reminiscent of the late 1990s exuberance.

And, even though 12 years ago may feel like an eternity, many investors still remember the pain of the tech bubble's spectacular burst.

Given the recent rally, tech stocks could be among the hardest-hit sectors should troubles in Europe flare up again, or the global economy weaken.