GO
Loading...

Fast Pro: Apple Is Still Cheap

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.”


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

On Sep 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long CVI; Terranova is long AXP; Terranova is long EMC; Terranova is long WFM; Terranova is long AMZN; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Cortes is long SO; Cortes is long Treasuries; Cortes is long Gold; Cortes is short EUR; Cortes is short Aussie; Najarian is long AAPL through call spreads; Najarian is long ARMH through call spreads; Najarian is long IBM through call spreads; Najarian is long V through call spreads; Najarian is long LVS through call spreads; Najarian is long WYNN through call spreads; Najarian is long XOM through call spreads; Najarian is long CIGX outright

For Brian Kelly
Funds managed by Brian Kelly are long MCP
Funds managed by Brian Kelly are long Euro
Funds managed by Brian Kelly are long TLT
Funds managed by Brian Kelly are short Aussie dollar
Funds managed by Brian Kelly are short SLV
Funds managed by Brian Kelly are long SPY straddle

For Dennis Gartman
Funds managed by Dennis Gartman own Canadian dollars
Funds managed by Dennis Gartman own Australian dollars
Funds managed by Dennis Gartman own Gold
Funds managed by Dennis Gartman own Soybeans
Funds managed by Dennis Gartman are short Yen
Funds managed by Dennis Gartman are short Euro
Funds managed by Dennis Gartman are short British Pound Sterling
Funds managed by Dennis Gartman are short S&P 500 Index
Funds managed by Dennis Gartman are short Dow Jones EURO STOXX 50 Index

For Mark Strawn
Morgan Stanley & Co. LLC makes a market in the securities of MGM Resorts International. In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from MGM Resorts International. Within the last 12 months, Morgan Stanley has received compensation for investment banking

CNBC.com with wires.

Symbol
Price
 
Change
%Change
AAPL
---
XOM
---

Featured

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET