The top performing S&P 500 stock in November still has leeway: Trader

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According to Delano Saporu, founder and CEO of New Street Advisors Group, the top performing S&P 500 stock may soar higher in November.

Dollar Tree tops the main index this month, up nearly 40% on Friday. The discounter said Tuesday that it would raise prices on most of its $ 1 products, in part, to $ 1.25 to offset rising freight costs.

“They are very sensitive when it comes to their freight costs, so it could be a good thing to raise that price point,” 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-driven” customers, he said.

“The market has received that positively,” said Saporu. “I think there is more room to run for Dollar Tree and we have a small position there.”

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

“We are already seeing some of the supply chain tension easing. We are seeing foundries starting to keep up with demand, ”said Sanchez, also Chief Market Strategist at Lido Advisors.

After a record-breaking 36% a month to date, Qualcomm is poised to capitalize on the chip regrowth as the number of industries requiring chips has grown, Sanchez said.

“It’s not just cell phones anymore. They really extended it to IoT, wearables, tablets, and even industrial applications,” she said. “So this is a stock that has done incredibly well and has a lot more headroom.”

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

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