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Power Play: Finding value in Applied Materials

Applied Materials
Source: Applied Sciences | Facebook

Stock are losing steam on the last trading day of May, but the Dow is still on track for a fourth straight month of gains, while the and Nasdaq are on pace for a third positive month.

Univest Wealth Management President Kevin Norris tells CNBC's "Power Lunch" on Tuesday the stock market is fairly valued at these levels.

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"The economy continues to expand at a modest pace with the help of a supportive Federal Reserve. Real GDP growth is in a sweet spot with modest inflation. Equity flows are moderate without any exuberance or speculative valuations," Norris said.

In this environment, Norris is betting on technology stocks like Applied Materials.

"This stock plays into our theme of an upside surprise in IT spending heading into year end and into 2017. The tech sector has low regulation risk, reasonable valuations, companies are flush of cash, and buying back the largest amount of shares," Norris said.

Applied Materials is lower during trading, but is up 30 percent year-to-date.