Nasdaq 100 stock looks ‘ridiculously cheap’, trader says

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The Nasdaq 100 may have hit a record high on Tuesday, but not all of its components keep pace.

At Tuesday’s close, 19 stocks in the tech index were 20% or more from their 52-week highs, including popular names such as:

Shares of chipmaker Micron could prove to be a big catch-up trade, Joule Financial founder and chief investment officer Quint Tatro told CNBC’s Trading Nation.

“It is now trading at valuations that are just ridiculously cheap,” Tatro said Tuesday.

“Let’s say they don’t achieve those profits because we have a slowdown in memory chips, so that’s 10 or 12 times the anticipated profits – again, still ridiculously cheap,” he said.

With a “stellar track record” and a strong position in the computer chip market, Micron is poised to explode if demand for computers picks up, Tatro said.

Biogen shares could also set the stage for a breakthrough, JC O’Hara, chief market technician for MKM Partners, said in the same interview.

Shares of the biotech company have been “dead money” for years, but a review of the stock’s long-term chart suggests the potential for a big rally, O’Hara said.

“It looks awfully similar to how this stock traded from 2000 to 2011, a decade of consolidation,” he said of the last five-year consolidation. “But when the stock finally broke in 2011, look at the mighty run. Biogen has appreciated almost 400%.”

“This is why I am monitoring Biogen very closely here, as we believe it is about to explode and it could be an extremely powerful breakout.”

Disclosure: Tatro and Joule Financial own shares of Micron.

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