While Apple shares have lost ground recently, Google still offers relative strength, Chris Verrone of Strategas said Monday on CNBC.
On “Fast Money,” he said that Apple stock could still slip to the $575 level, which would represent opportunity. “I think those are levels where you have to own this thing. Over the longer term chart, this is still very much a bull market in Apple.”
But in the near term, more potential upside lies elsewhere, Verrone said.
“Google’s spent the last seven years between $350 and $710. It’s $750 today,” he said. “Does it just stop there after basing for seven years? I would argue probably not.”
Verrone framed the question of which stock to own now into a longer-term picture.
“Would I rather, on a longer-term basis, own a name that’s been a relative strength leader for 10 years or a name that’s just starting to break out from a big, long base? I’d probably take the latter call right here,” he said.
Verrone added that he thought quite a few money managers owned too much Apple stock at the moment.
“Owning 8 percent of your whole basket in Apple is too much right here,” he said.
For another sector worth a look, Verrone called out health care.
“We’ve been calling health care the 15-year breakout nobody’s talking about,” he said.
Trader disclosure: On Oct. 8, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Tim Seymour is long BAC; Tim Seymour is long SBUX; Tim Seymour is long AA; Tim Seymour is long GM; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long GM; Karen Finerman is long GLUU; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC CALLS; Pete Najarian is long SBUX; Pete Najarian is long MSFT; Pete Najarian is long LLY;
For Michael Dudas
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