Jerome Heppelmann, chief executive officer at Liberty Ridge Capital, told CNBC’s “Squawk on the Street” that he believes technology stocks are cheap.
“Industrials have been very much in favor over the last couple of years and are trading at peak valuations,” Heppelmann said Thursday. “In technology, you have strong cash flows, strong cash on the balance sheet and relatively modest valuations. Compared with industrials, I’d rather own technology.”
He said risk takers are now chasing returns in emerging markets. When those markets cool, he believes investors will return to U.S. stocks offering high growth and reasonable valuations – technology.
He likes Maxim Integrated Products, Microsoft, EMC, Dell and Symantec.
He said Microsoft is rolling out Vista, the biggest product launch in history.
“I think you’ll definitely see a stock price bump,” he said.