One lagging Nasdaq 100 stock looks 'ridiculously cheap,' trader says. Why it may be time to buy

The Nasdaq 100 may have hit a record Tuesday, but not all of its components are keeping pace.

As of Tuesday's close, 19 stocks in the tech-heavy index were 20% or more off their 52-week highs, including popular names such as:

  • Zoom Video, down 42%
  • Trip.com, down 36%
  • Peloton Interactive, down 33.5%
  • Micron Technology, down 26%
  • Biogen, down 25%
  • Sirius XM, down 22.5%
  • Tesla, down 21%

Chipmaker Micron's stock could prove to be a strong catch-up trade, Joule Financial founder and chief investment officer Quint Tatro told CNBC's "Trading Nation."

"It is trading at valuations now that are just ridiculously cheap," a nearly seven times forward price-to-earnings multiple as of Tuesday's close, Tatro said Tuesday.

"Let's say they don't hit those earnings because we do have a slowdown in memory chips, so, it's 10 times or 12 times forward earnings — again, still ridiculously cheap," he said.

With a "stellar balance sheet" and a sizable position in the computer chip market, Micron is poised to pop if demand for computers picks up, Tatro said.

Biogen's stock may also be setting up for a breakout, MKM Partners chief market technician JC O'Hara said in the same interview.

Shares of the biotechnology company have been "dead money" for years, but a look at the stock's longer-term chart suggests the potential for a sharp move higher, O'Hara said.

"This looks awfully like how this stock traded from 2000 to 2011, a decade-long consolidation period," he said of the latest five-year consolidation. "But when the stock finally broke out in 2011, look at the powerful run. Biogen appreciated nearly 400%."

"That's why I'm keeping my eye very closely watching Biogen right here, because we believe it's on the verge of breaking out and it could be an extremely powerful breakout."

Disclosure: Tatro and Joule Financial own shares of Micron.

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