- Disney, Microsoft, Under Armour, Walmart, and Costco were among the names hitting multi-year highs during Tuesday's trading session. On the "Halftime Report," the traders debated whether or not these stocks still have room to run, or if investors should take profits.
- "I think you gotta be a little cautious here," Investitute co-founder Pete Najarian said of owning Disney at current levels.
- Nuveen Portfolio Manager Stephanie Link says she "still likes" Under Armour, and when it comes to defense Virtus Investment Partners' Joe Terranova says he "can't find an alternative" to Honeywell.
- Shares of Microsoft have soared 33% this year, but Investitute co-founder Jon Najarian is staying bullish, saying "they have crushed it and they continue to do so."
On Tuesday's "Halftime Report," the traders made their recommendations on several stocks that have reached new highs.
Disney hit an all-time intraday high of $143.51 on Tuesday. The traders have been enthusiastic about Disney, most recently on last week's June 13 show, when they pointed to the company's extensive intellectual property as its biggest asset, especially as it prepares to enter the streaming arena with Disney+.
But "Halftime Report" trader Pete Najarian, who owns the stock, recommends being cautious: "I love what's happening right now, but I am a little bit shocked that it continues to go to the upside, because of the pace of the move…. I think you gotta be a little cautious here." In fact, on the options side, he concludes, "I'd be selling calls up against it."
On Tuesday Microsoft also reached an all-time high going back to its IPO in March 1986. Jon Najarian says, "I love it. [Thanks to] recurring revenue ever since they went that model with Satya Nadella, they have crushed it and they continue to do so." That recurring revenue comes from subscription services such as Office 365, which are part of the successful cloud-focused strategy that Nadella has championed since becoming CEO in 2014.
Under Armour, which has surged 55% this year, reached $27.42 yesterday and passed its previous high set in January 2017. Though Nuveen's Stephanie Link notes that 20% of its shares are still short, "It's a pretty good story in terms of margin improvement. They're turning things around in North America. They have a lot of room to grow internationally. I still like it. I've owned it for a while but I still like it."
Disclosure: Stephanie Link owns shares of Under Armour. Pete Najarian owns shares of Microsoft and Disney. Jon Najarian owns Disney and Microsoft calls. Joe Terranova owns shares of Disney, Honeywell, and Microsoft.