Trading Nation: Tesla, Micron lag market in wild week for stocks
Following a rough week on Wall Street, CNBC’s “Trading Nation” went on the hunt for the best buying opportunity among the top laggards: Tesla, JD.com, Micron, Under Armour, and Disney.
Craig Johnson, chief market technician at Piper Sandler, pointed to Under Armour as the stock best positioned for a rebound.
“This is a stock that has been out of favor for a while, starting to really show signs of turning around,” he said Friday.
Johnson highlighted the stock’s recent decline to about $22 per share, saying “I think on this little pullback here, we definitely should be buying this stock.”
“Not only does it look good technically, but also fundamentally,” Johnson said.
Piper Sandler analyst Erinn Murphy gives the stock an overweight rating and a $31 price target, implying 36% upside on the stock after its Friday close at $22.78.
“This is the comeback kid to be buying on this little dip in here,” said Johnson.
In the same interview, Danielle Shay, director of options at Simpler Trading, chose Tesla as the best bargain in the barrel.
“Tesla’s looking amazing,” she said. “This looks like a great entry point.”
Shay suggests investors sell puts at $550 price or to buy into the stock at current levels for the longer term.
“Overall on the weekly chart, you have some great consolidation, and ultimately, I’m targeting $1,000,” Shay said.
