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One stock just joined Apple and Microsoft in the trillion-dollar club

VIDEO2:0002:00
Investors should be patient with Alphabet's stock price: Investing pro

An exclusive Wall Street club has welcomed a new member.

Alphabet surpassed a $1 trillion market cap on Thursday, joining Microsoft and Apple in the upper echelons of mega-cap stocks.

But after the Google parent's 10% surge this month, Joule Financial President Quint Tatro says the stock looks too hot to jump in right here.

"Our calculations say 26x based on estimates, but they're growing those earnings at only 17%," Tatro said on CNBC's "Trading Nation" on Tuesday. "It's priced to perfection, so any correction with earnings or any slowdown in earnings is going to really hit this stock hard."

Alphabet has rallied hard over the past 12 months, gaining 35% since this time last year. It has also hit a record high for two sessions in a row.

"We really like the company, just don't like the stock here. We encourage investors to be patient. There will be better prices ahead," said Tatro.

Bill Baruch, president of Blue Line Capital, is still backing the Alphabet rally.

"The chart looks great. I've been talking about this breakout in Alphabet since it happened in November, rallied into December. It pinged a trend line as well and now we're running," Baruch said during the same segment.

"I'm targeting $1,550 to the upside," Baruch said. "It's a 200% retracement from the midyear last year drop-off. So I think $1,550 is an area to keep an eye on. There's a lot of support at $1,360, $1,370. As long as it stays above $1,360 to $1,370, the path of least resistance is higher in the longer term," said Baruch.

A move to his $1,550 target implies 5% upside from the current price of nearly $1,480. It would also mark a new high.

Disclosure: Baruch and Blue Line Capital hold Alphabet shares.

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