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Apple, legacy tech stocks still have room for growth: Experts

Growth
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Technology stocks are soaring, but while IPOs like Line and Twilio steal the spotlight, a pair of experts suggested looking for growth in the older guard of technology companies.

Channing Smith, a managing director at Capital Advisors, told CNBC's "Squawk Alley" on Monday that his firm still believes Apple will give investors a significant return on investment over the next few years with dividends taken into account.

"Look at Apple, this is a stock that struggled," Smith said. "This is a cheap stock."

The tech giant had previously suffered through a downswing in its stock, hitting near a two-year low, before seeing a bump after its most recent earnings report. Across the board, tech stocks more generally are thriving with one measure, XLK — the exchange traded fund tracking technology — indicating they are hitting their highest levels in more than a decade.

Smith also said that for investors seeking growth, Amazon, Facebook and Google continue to beat expectations and expand. More broadly, mobile internet and e-commerce are continuing to drive earnings and revenue growth, he said.

Kulbinder Garcha, an analyst at Credit Suisse, also said Apple continues to be an inexpensive stock. He currently rates the iPhone maker as outperform.

Garcha also said that HP Enterprise offers a good deal for investors.

"There is a reversion in some of the IT hardware legacy names, partly because they became so inexpensive," Garcha told CNBC. "Of those legacy names, HP Enterprise would be the one that we still prefer versus IBM and Cisco."

Disclosure: Credit Suisse makes a market in Apple stock. Apple is an investment banking client of Credit Suisse.