Some tech stocks are safe to buy, but pick wisely: Nuveen equity strategist

  • Tech stocks such as Cisco and Microsoft are good buys, says Nuveen Managing Director Stephanie Link.
  • Tech companies that are down after reporting earnings but have strong fundamentals are safe bets, she says.
  • Facebook is interesting because the stock is quite cheap and "seems to have stabilized," Link says.

A number of technology companies could make for a safe buy right now, Nuveen Managing Director Stephanie Link told CNBC on Thursday.

"Anyone that has really strong fundamentals, but the stocks are down, from where they reported earnings and earnings actually went higher" are good picks, the head of active equities research for Nuveen affiliate TIAA Investments said on "Closing Bell."

Tech stocks, once the high flyers, have taken a beating in recent months. Facebook, Apple, Amazon and Google parent company Alphabet, part of the group known as "FAANG," have all fallen into correction territory. Facebook, the hardest hit, is down almost 40 percent from its record high in July.

Link said that she bought "a bunch" of Cisco shares on Wednesday, and names such as Microsoft, Intel and Facebook are compelling as well.

"I'm also even looking at Facebook, because it seems to have stabilized and that stock is quite cheap," she explained.

Salesforce is "interesting," Link said, but that stock may be a little more on the discretionary side.

"It's just not a cheap stock," she explained. "So you kind of have to pick your spots there."

The tech-heavy Nasdaq Composite dipped 0.25 percent on Thursday to close at 7,273.08. The Dow Jones Industrial Average closed down 27.59, snapping a three-day winning streak, and the S&P 500 slipped 0.2 percent as investors await news of China-U.S. trade negotiations.

Disclosure: Link owns shares of Cisco, Salesforce, Microsoft, Intel and Facebook.

Disclaimer

— CNBC's Keris Lahiff contributed to this report.