Two tech stocks to buy and one to avoid heading into busiest week of earnings

It's the moment of truth for tech this week.

Around one-third of the tech-heavy Nasdaq 100 reports in the coming days with industry leaders Amazon, Microsoft, Google parent Alphabet, and Intel among those set to open up their books.

One area of tech looks like a bet on long-term growth to Mark Tepper, president and CEO of Strategic Wealth Partners.

"Amazon, Google, Microsoft — we like and own all of these, and one of the things that all three have in common is that they're huge players in cloud computing and that space is going to continue to see accelerating growth over the next several years," Tepper told CNBC's "Trading Nation" on Friday. "We think cloud usage is actually going to double in the next few years."

Tepper says one of those cloud stocks looks like a better deal than the rest.

"Amazon's up about 50 percent this year, Microsoft is up about 30 percent, Google is only up about 5 percent this year, and I think it's a great buy right now," he said.

From a valuation perspective, Alphabet also looks cheaper than its peers. It trades at 48 times trailing earnings, below Microsoft's 50 times P-E ratio and Amazon's 140 times valuation.

Bill Baruch, president of Blue Line Futures, sees Microsoft as the best bet of the bunch based on its charts.

"Microsoft is the most constructive," Baruch said on Friday's "Trading Nation. "It's the only one holding above the 100-day moving average, and there's a nice constructive trendline going back to end of last year. I think it's priming to head higher."

Microsoft is currently trading more than 2 percent above its 100-day moving average. It briefly broke below that trendline in mid-October though quickly recovered.

Intel's charts tell a different story, according to Baruch.

"If you take a look at Intel, its best days are sort of behind it in the sense it's peaked midyear, it's moved down, and you've got the death cross that took place in September, and then now you have the 100-day moving average looking to push through the 200-day," said Baruch. "I would stay away from Intel."

Sell-offs since a June peak have taken Intel shares down to levels not seen since February. The stocks' 200-day moving average broke below the 50-day moving average in early September, a bearish technical signal pointing to a decelerating trend in price.

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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 CNBC and 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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