Out of the 500 stocks that comprise the S&P index, only five trade north of $1,000 per share: Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon.com, Inc. (NASDAQ: AMZN), AutoZone, Inc. (NYSE: AZO), Booking Holdings Inc (NASDAQ: BKNG) and NVR, Inc. (NYSE: NVR).
Two experts guested on CNBC's "Trading Nation" to discuss which of these five names should be bought by investors.
AutoZone's stock has been a "very consistent" winner over the past two decades, even in 2008 and 2009, when the stock showed just a "little bit of a drop," said Danielle Shay, director of options at Simpler Trading.
Over a more recent timeline, the company has shown consistent earnings growth and analysts are expecting another 3% earnings growth in its March 3 earnings report.
AutoZone is also well-positioned to cater to a growing demographic of people wanting to fix up their older cars instead of buying a new one, Shay said. This comes at a time when the economy is starting to "stutter a little bit," she said.
Amazon's stock broke out to a new all-time high in early 2020 and did so in a "very meaningful manner," Miller Tabak chief market strategist Matt Maley said on "Trading Nation."
Amazon's stock still needs to "play catch" with other "high-flying names," as its recent breakout is still shy of what other momentum stocks have shown, he said.
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