This Investor Is Making Moves In Abbvie, Chipotle And Palo Alto Stock: Here's What He's Buying, What He's Selling

Zinger Key Points
  • Joe Terranova says Chipotle is able to endure the inflationary environment.
  • He adds that Palo Alto Networks delivers growth at a more reasonable price than CrowdStrike.

Virtus Investment Partners' Joe Terranova is shaking up his portfolio on Wednesday.

What Happened: Terranova trimmed his AbbVie Inc ABBV position and bought Chipotle Mexican Grill Inc CMG and Palo Alto Networks Inc PANW shares. 

"I don't think we are in the initial stages of a bear market, so I'm looking for opportunities," Terranova said Wednesday on CNBC's "Fast Money Halftime Report."

He decided to trim AbbVie to free up some capital after seeing bearish momentum in the name, he said. For three consecutive days, AbbVie experienced range expansion, where the daily trading range was much wider than average, he explained. 

See Also: AbbVie Releases New Data From Mid-Stage Navitoclax Combo Trial In Bone Marrow Cancer

"That was quickly negated. It was completely eliminated by three negative range expansion days, so I had to take half that position off," Terranova said.

In a search for growth at a reasonable value, he came across Chipotle, he said.

"Chipotle is actually able to endure this inflationary environment. Fast-casual seems to have some resiliency, there's some brand recognition and there's the efficiency of the way management is navigating this inflationary process," Terranova said.

He told CNBC that he took the funds from the AbbVie sale and "very happily" put them into Chipotle stock, which increased his growth exposure. 

Terranova also found opportunity in Palo Alto stock. 

"Cybersecurity is such a dominant theme in 2022. Palo Alto is a way to add to that cybersecurity exposure," he said. 

He noted that CrowdStrike Holdings Inc CRWD is a better option for investors looking for faster revenue growth and higher beta exposure.

"If the market is going to appreciate significantly from here, CrowdStrike is the better trade, but I kind of wanted to trade down a little in the beta exposure. I wanted to get growth at more of a reasonable price. That's what Palo Alto will deliver for you," Terranova said.

He told CNBC that he expects the stock to "break out significantly beyond" $700 per share. 

ABBV, CMG, PANW Price Action: According to data from Benzinga Pro, AbbVie was down 5.52% at $158.08, Chipotle was up 3.05% at $1,579.43 and Palo Alto was up 3.2% at $631.50 at press time.

Photo: Forextime.com from Flickr.

Posted In: CNBCJoe TerranovaLong IdeasTechnicalsTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.