November’s best-performing S&P 500 stock still has room to run, trader says

November’s top-performing S&P 500 stock can still climb higher, New Street Advisors Group founder and CEO Delano Saporu says.

Dollar Tree leads the major index this month with a nearly 40% gain as of Friday. The discount retailer said Tuesday that it would raise prices for most of its $1 products to $1.25 in part to offset rising freight costs.

“They’re highly sensitive when it comes to their freight costs, so moving up that price point could be a good thing,” Saporu told CNBC’s “Trading Nation” on Wednesday.

The move could also enable Dollar Tree to offer new and improved products and services to its “value-centric” customers, he said.

“The market took it positively,” Saporu said. “I think there’s more room to run for Dollar Tree, and we own a small position there.”

This month’s second-best S&P performer could also still have headroom, Chantico Global founder and CEO Gina Sanchez said in the same interview.

“We’re already starting to see some of the supply chain tensions starting to ease. We’re seeing the foundries start to catch up with demand,” said Sanchez, also chief market strategist at Lido Advisors.

After a record-setting 36% run month to date, Qualcomm is poised to take advantage of recovering chip supply now that the number of industries in need of chips has grown, Sanchez said.

“It’s not just handsets anymore. They’ve really expanded it to the internet of things, wearables, tablets and even into industrial applications,” she said. “So that’s a stock that has done incredibly well and has a lot more room to run.”

Disclosure: New Street Advisors Group owns shares of Dollar Tree.

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