Tech stocks are trading at their most expensive valuation since January 2005.
The XLK technology ETF, which mirrors the S&P 500 information technology sector, trades at 21 times forward earnings. That is its highest forward earnings multiple in nearly 15 years.
Two names justify that hefty price tag, according to Todd Gordon of TradingAnalysis.com.
"We have a little bit of a momentum trade and two names that I like -- first Salesforce. We've just broken from a consolidation over the last year and a half. I just added half a position based on this segment to my portfolio through $163. No reason we shouldn't test the upper end around $200," Gordon said Tuesday on CNBC's "Trading Nation."
"Another name is AMD. This has been the most storied stock, love this chart. [It is] trading 35 times forward earnings, [nearly] double the S&P. AMD also just broke a 20-year downtrend resistance here. We're trading into the $40s. I don't see any reason why we shouldn't be able to get up to that handle," said Gordon.
AMD is currently trading at 39 times forward earnings, while Salesforce is at 53 times.
Quint Tatro, president of Joule Financial, sees two tech-exposed stocks outside the sector as worthy buys.
"We're not a big fan of chasing the momentum," Tatro said during the same segment. "We like to look at the areas that we think maybe have room to run here. Look at a Facebook -- incredible valuation, cheap on comparables going forward -- as well as Square. We think that that stock has been beaten up enough and looks ready to run."
Facebook is up more than 2% this month, while Square has surged 8%. Both have outperformed the S&P 500.
Disclosure: Gordon holds AMD and CRM. Joule Financial holds FB and SQ.
"price" - Google News
November 21, 2019 at 02:15AM
https://ift.tt/2Ot6SW1
These two tech stocks could be worth the high price tag - CNBC
"price" - Google News
https://ift.tt/2WuCIFv
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "These two tech stocks could be worth the high price tag - CNBC"
Post a Comment