It’s a battle between the two biggest S&P 500 stocks.
In one corner of the ring, Microsoft is still hitting the record button, on the other hand, Apple hasn’t reached a new high since January.
CNBC’s “Trading Nation” asked two traders, which is a better bet: the latest underdog Microsoft or Apple?
“It depends on what you value more, do you value… catch up, or do you value long-term growth,”; said Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors. Thursday
Apple’s comeback from the outbreak has slowed since January. While it’s up 100% from its 52-week low, it’s down 10% from its January 25 high.The stock is down nearly 2% this year, although the XLK tech ETF has gained 8%.
“Right now, if you look at the pure valuation, believe it or not, Microsoft doesn’t trade with the same high premiums as Apple, so even though Apple is cheaper, Microsoft is cheaper compared to its history,” she said. Said.
Sanchez said Microsoft is trading about 20 percent higher than its long-term valuation, which is high, but reasonable given its sales growth prospects.
JC O’Hara, head of marketing technical at MKM Partners, said Microsoft appears to be a stronger competitor here. However, that wasn’t the name he was betting on.
“When you look at Apple and you look at Microsoft, they’re both traded, with a high level of positive correlation between price movements, so what makes me think this is Apple is probably the best thing at all.” It’s going to buy now, ”O ‘Hara said during the same interview.
Just as Microsoft last week kicked off to new highs, O’Hara predicted that Apple would soon do the same.
“If Apple starts to build momentum and hit new highs, there is more eye to keep an eye on this stock, so we’re not buying leadership, we’re buying things that are lagging behind, we’re buying something that is slowly improving,” he said. that.
Disclosure: Lido owns MSFT and AAPL.Sanchez holds MSFT.