Amid the recent market turmoil, one group of stocks has managed to stay above the fray: tech. And there are some specific names in the space market watchers are eyeing for a big breakout.
Miller Tabak equity strategist Matt Maley pointed out that the tech-stock tracking ETF (XLK) has recouped all of its losses in the last month, but warned of a “double top” formation that could possibly be forming in the XLK chart.
Nevertheless, Maley says Micron is still a tech stock worth buying. Along with the name being very cheap, it currently trades at about 7 percent price-earnings, the chart on the stock has broken out of a bearish formation that Maley believes signals more upside for Micron.
“It had been forming a negative descending triangle formation, but it broke above the top end of that formation,” he said Wednesday on the “Trading Nation” segment of “Power Lunch.” “Now it’s testing its November highs, so if it can break higher from here, it’ll really break out above its $50 level. That’s going to be very positive for a stock that’s very cheap.”
Micron is currently up nearly 18 percent year to date and is the best-performing tech stock in the last month.
Strategic Wealth Partners CEO Mark Tepper has his eye on another tech stock. While Tepper doesn’t believe that tech will be the leading sector as the year goes on, he does believe popular FANG name Netflix is worth buying.
“Netflix is a game changer in the way we consume video content,” he said Wednesday on “Trading Nation.” “They can easily raise prices by 100 percent and nobody would bat an eye.”
The crux of his bullishness on Netflix rests with the streaming platform’s growing subscriber base. On Jan. 22, Netflix reported that it had added another 8.3 million subscribers globally during the fourth quarter, far exceeding the 6.3 million initially estimated.
Much of this, according to Tepper, is thanks to the company’s “unbelievable” original content that has helped to drive audience growth.
All of this makes the stock a “strong buy” in his book, according to Tepper. Netflix is currently up more than 50 percent year to date.[“Source-cnbc”]