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2 Stocks Trigger Valuations Concerns

A handful of stocks have landed on the Fast Money radar, amid growing chatter that their valuations may be stretched. Are these names on your radar too?

Tiffany

Weak holiday sales and a silver “fashion miss’ have triggered skepticism that Tiffany's results may not be as attractive as it signature pieces. As a result, shares may be outpacing fundamentals.

How should you trade it?

“I look favorably on the long-term prospects but in the near-term I think the stock has gotten ahead of itself,” says Oppenheimer’s Brian Nagel.

Although he has a long-term outperform rating on Tiffany, he’s cautious in the near-term. However, on any pullback he’s a buyer.

Guy Adami says although the stock has made a series of lower highs, which is bearish, he still thinks Tiffany ‘is ok.’ If private equity gets going again, he thinks Tiffany could be a takeover target.

Keith McCullough says, whatever you do, don’t short Tiffany. The potential of a stronger dollar means gold and other precious metals become cheaper. “That makes cost of goods for Tiffany attractive,” he says.

eBay

eBay came under scrutiny, after Credit Suisse downgraded shares to ‘Neutral citing valuations; the stock has already gained more than 20% this year.

How should you trade it?

Tim Seymour is bullish. He thinks eBay could have more upside. “The PayPal initiative is driving growth and that’s exciting. If they continue to roll and get merchant acceptance, then I think eBay can go higher.”

Guy Adami agrees that PayPal is a long-term driver. “Maybe the current advance has gotten a little long in the tooth,” he says, “but longer-term it probably still has mojo.”





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Trader disclosure: On Mar 15, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour is long BAC; Seymour’s firm is long FCX; Seymour’s firm is long GFI; Finerman is long AAPL; Finerman is long BAC; Finerman is long JPM; Finerman is long WMT; Finerman is long HPQ; Finerman is long KFF; Finerman is long PACD; Finerman’s firm is long AAPL and short calls; Finerman’s firm is long JPM; Finerman’s firm is long WMT; Finerman’s firm is long PACD; Adami is long C; Adami is long GS; Adami is long INTC; Adami is long AGU; Adami is long NUE; Adami is long BTU; McCullough is long XLU

For Carter Worth
No disclosures

For Brian Nagel
The author certifies that this research report accurately states his/her personal views about the subject securities, which are reflected in the ratings as well as in the substance of this report. The author certifies that no part of his/her compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report.

For Shaw Wu
(CSCO): Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company
(AAPL): Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company
(EMC): Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company
(IBM): Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company

CNBC.com with wires.