This stock has doubled—and more gains could be ahead

Although the S&P 500 has risen about 1 percent for the year, two stocks within the index have more than doubled — Netflix and Amazon, up 156 percent and 116 percent, respectively. And according to one technician, there's still more room to run for one of these highly prized names.

Todd Gordon of said Wednesday that Netflix, having broken through a key level of $115, is primed to return to old highs at $130.

"Though I love the Amazon chart, it's straight ahead, there's nowhere to define where you're wrong in the trade. That's not the case in Netflix. If you look at the Netflix chart, there's a very clearly defined point of decision around $115.75," Gordon said on CNBC's "Trading Nation."

A move to $130 would be another 4 percent rise from where Netflix traded midday Monday.

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However, "an investor looking at these equities has to be in it for the long term and have some appetite for risk," said Albert Brenner of People's United Bank, also on "Trading Nation."

While Netflix and Amazon have had great gains this year, Brenner said investors should consider the high price-earnings ratios of the stocks.

"If you ask yourself what would have to happen to the company over the longer term, just to get that multiple back down to say a multiple of 35, you're looking at either a growth in revenue of 10 times or some major changes in terms of margins."

According to FactSet, Netflix has a trailing P/E ratio of 332 times past earnings, and Amazon has a P/E ratio of 974 times earnings.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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