Where traders are finding value in the Nasdaq now

The Nasdaq is trading at fresh 15-year highs, but the tech-heavy index may still contain some bargains.

For David Seaburg, head of equity sales trading with Cowen & Co., one such name is networking giant Cisco.

"This is a company that's transitioned from a high-growth company to a value company, and management has been extremely clear: Their focus is on earnings; delivering earnings," Seaburg said.

The company "has a real ability to gain market share, they're paying a solid dividend, and management is ultra-focused on growing that earnings numbers," he said. "So this is probably the best value play you can find, especially in the Nasdaq."


Nasdaq 5000
Shannon Stapleton | Reuters

On the technical side, finding attractive names is a bit different. The focus is often on finding stocks with momentum, rather than getting into companies that appear underpriced given how much money they are likely to earning in the future.

For Ari Wald, head of technical analysis with Oppenheimer & Co., one name that looks attractive on a technical basis is Salesforce.com.

The stock recently broke above what Wald deems to be a "triangle continuation pattern," indicating that the stock will "resume higher" after a bit of a break. He believes that the stock, which closed Friday at $67.69, is headed to $80.

Another stock chart that looks good to Wald belongs to Redhat, which recently broke above $63. Wald believes the software stock is also headed to $80.


Disclosures: none.