Two pros discuss which beaten up Nasdaq 100 stocks you should buy
- Expert says Peloton will sustain its subscriber base in the post-pandemic world.
- Piper Sandler's Craig Johnson sees 40% upside and 17% downside in TSLA.
- Analyst Alex Potter has a price target of $1,200 per share on Tesla Inc stock.
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The Nasdaq 100 has recovered more than 100% since its low in March 2020. Despite the sharp growth, several notable stocks, including Tesla Inc (NASDAQ: TSLA), Zoom, Splunk, Baidu and Peloton Interactive Inc (NASDAQ: PTON), are still 30% to 50% down compared to their respective 52-week highs.
The pullback poses a good buying opportunity for investors. Picking his favourite on CNBC’s “Trading Nation”, BK Asset Management’s Boris Schlossberg said on Friday:
“I really like Peloton because to me, this is a secular success story. I think Peloton is really going to be sort of the Netflix of the workout world.”
Peloton will sustain its subscriber base in the post-pandemic world
The firm’s managing director for FX strategy expressed confidence that Peloton will sustain its subscriber base in the post-pandemic world. Even when gyms and indoor cycling studios reopen for the people, he added, the convenience that Peloton offers will make its subscribers stick.
According to Schlossberg, Peloton’s innovations have been nothing short of a revolution for the workout industry. Much like many other technology companies, the American exercise equipment and media company will continue to expand its customer base in the long term, all the while slashing its costs.
Commenting on Peloton’s subscription-based model and its first-mover advantage, Schlossberg said:
“Wall Street loves to value subscription services. That’s the future digital economy, and that’s what makes Peloton such a compelling long-term buy.”
Retail analyst Simeon Siegel of BMO Capital Markets, however, is cautious on Peloton. On a year-to-date basis, the New York-based company is currently a little under 25% down in the stock market.
Craig Johnson picks Tesla as his favourite Nasdaq stock
During the same interview with CNBC, senior technical research analyst Craig Johnson of Piper Sandler echoed Schlossberg’s remarks about Peloton but picked Tesla as his favourite for investment at the moment.
According to Johnson, Tesla is consolidating – the stock is down 30% compared to its high. From $500 per share to $900 per share, as per the analyst, the U.S. electric carmaker is in a trading range.
“From my perspective, you’ve got 40% upside, 17% downside. This is a stock that I think can do well moving into the second half of the year. The fundamentals and technicals seem to align here.”
Johnson also highlighted that Piper Sandler’s Alex Potter is also positive on the stock with a price target of $1,200 – almost double its current per-share price. Luke Lloyd, however, holds an entirely different opinion. On a year-to-date basis, Tesla is currently about 15% down in the stock market.
