Apple may have hit another record high Tuesday, but “Fast Money” trader Joe Terranova said that the stock is still a bargain.
“On a valuation basis, it is cheap,” he said. “When you look through the S&P 500… this is by a mile the best stock out there—fundamentally, technically.”
It’s the second day in a row that the tech giant hit an all-time high. On Monday Apple also hit a record high, which was followed by Wedbush Securities adding it to its “best ideas” list Tuesday morning.
Terranova also pointed out that Apple's product cycle is going to refresh over the next three to six months, so updated Macs, iPads and of course the highly anticipated iPhone 5 will soon be hitting store shelves.
The bottom line, he said, is that the stock is working.
“You stay with what’s working, he added. “There’s no reason not to because much of what is out there right now is not working.”
Apple's strength was reflected in the options pit, where there was a lot of activity in its weekly options, according to OptionMonster’s Jon Najarian. The 405 calls that were $3 Monday have exploded to over $19 contracts Tuesday.
“That’s why people trade options,” he said. “That’s truly fast money.”
Apple is leading the pack and just keeps increasing the distance between itself and the number two stock, Exxon Mobile , he added. “That’s fantastic outperformance.”