Enter multiple symbols separated by commas

Portfolio Manager: Stocks Are Undervalued and Can Move Higher

Noah Blackstein, portfolio manager for Dynamic Mutual Funds, told CNBC’s “Squawk on the Street” that he believes stocks are undervalued and the market can go higher.

“I think the market becomes more selective,” Blackstein said Tuesday. “I think the shift in the market goes more toward some of the growth stocks which we’re seeing in the last month or two start to lift from their bottoms. Overall, especially for the growth parts of the market, I’m excited.”

Blackstein said he believed Google is undervalued.

“That was my top pick a month ago,” he said. “I think there’s a lot of room for (Google) to grow. I think the best of Internet advertising still isn’t priced in. You have a free option on a whole host of ancillary services that they’re just beginning to provide. So, I think (the stock) is undervalued.”

He said strong M&A activity has made shorting individual stocks dangerous, especially for the retail investor.

“When you find stocks that may be overvalued or in secular decline, you can walk in one morning to M&A and get hurt very badly,” Blacksein said. “If you’re going to short, stick to the ETFs or sector-specific ETFs and try to stay away from individual stocks…until some of this M&A (activity) dies down.”

Contact Squawk on the Street

  • Carl Quintanilla

    Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs

    Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • David Faber

    “Squawk on the Street” Co-Anchor

  • Rick Santelli

    Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.