When it comes to technology stocks, value-oriented David Katz, chief investment officer of Matrix Asset Advisors, goes for what he calls the "dull" and "old," not the shiny and new.
That means Microsoft and Cisco Systems rather than Facebook, he tells
CNBC. Facebook has dropped 12 percent during the last month, while Cisco has climbed about 9 percent and Microsoft has advanced 7 percent.
Katz likes the two oldies because they have price-earnings ratios around 15 and are poised for growth.
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And when should investors purchase their stocks?
"It's impossible on a day-to-day basis to figure out what's going on," Katz said. "We would definitely try to focus on a longer-term view, at least six to 12 months. Set that time frame and don't chase up days. Do your buying on the days when it looks like everything is coming to an end and everything is selling off."
As for Microsoft,
Morningstar analyst Norman Young gives it a mixed review. "Microsoft is a story of two companies: a lagging consumer and devices firm, and a firm whose dominance in the enterprise world is growing," he writes on Morningstar.com.
When it comes to Cisco, its stock is "fundamentally undervalued," writes
Morningstar analyst Michael Hodel. "Management is making very good capital allocation decisions, and the firm's market position remains very strong across its key categories."
He sees fair value for the stock at $26. It closed at $23.21 Thursday, up 18 cents.
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