Take profits in tobacco stock if it reaches this level, traders say.

Tobacco stocks have been hot this month, with Altria rallying more than 10% and Philip Morris adding 7%. This comes as the S&P 500 has advanced just 1%.

But Bill Baruch, president of Blue Line Capital, says one stock’s rally could be about to hit a wall.

“Taking a look at Philip Morris, it’s had a decent year. I mean, its nearly 20% gains are more a product of the broader market,” Baruch said on CNBC’s “Trading Nation” on Friday. “It’s really the recent earnings, that’s it in a nutshell —good numbers but not-so-great guidance, so if this thing rallies there’s a lot of overhead resistance, $88 to $90. So, if you are in it, and it does get up there, take your profits.”

Philip Morris would need to add another 8% to hit $88. It last traded at that level in July.

Its main competitor, Altria, looks to have more promise than Philip Morris, Baruch says.

“There is some value down here, and I’ll tell you why. You’ve got a lot of support at $40,” he explained. “A lot of the negativity is already priced in — the Juul bans, you’ve seen a little bit of a bump up when the merger talks [with Philip Morris] dissipated. And they have earnings coming down the pipeline two weeks from now.”

Altria will report earnings on Oct. 31. Analysts surveyed by FactSet anticipate 6% earnings growth.

“Looking at this $40 support, we could see this thing stretch up into the end of the month and ahead of those earnings. So there’s a tradable opportunity here,” said Baruch.

Steve Chiavarone, portfolio manager at Federated Investors, agrees that there is value at least in some of the tobacco stocks.

“Investors don’t go to these companies because they love their products. They go to these companies because they love the fact that they’ve got stable pricing, they’ve got good earnings growth, and they’re attractive in terms of valuation with good yields, and none of that with all the headline news has really changed,” Chiavarone said during the same segment.

Altria trades at 10 times forward earnings, and Philip Morris at 15 times, while the S&P 500 trades with a 17 times multiple.

“The headline issues are the headline issues, this sector is absolutely no stranger to that, but the underlying fundamentals, from a pure stock perspective, actually look pretty attractive,” said Chiavarone.

Here’s why Apple shares could rally another 25% or more

Apple just smashed through to fresh records.

The iPhone maker surged nearly 2% to begin the week after Raymond James analysts upped their price target to $280, the most bullish on the Street. The firm cited stronger estimates for iPhone 11 sales as reason for the increase.

Craig Johnson, chief market technician at Piper Jaffray, is ready to get even more bullish.

“The trend looks great,” Johnson said on CNBC’s “Trading Nation” on Monday. “The stock has just broken out to new all-time highs, and in fact when you look at the size of the consolidation it just broke out of and you do a measurement on it, you can certainly argue for a price objective that, purely based on the charts, [takes you] north of $300 so I’d still be a buyer of Apple in here.”

A move to $300 marks 25% upside from Monday’s close. It would also mark new highs for the stock.

Strategic Wealth Partners president Mark Tepper says there’s more to like about Apple than what Raymond James outlined in its bullish case.

“What the call doesn’t really mention are some of the things that interest us when it comes to Apple. For the first time in a long time, the iPhone now makes up less than 50% of Apple’s revenues. Why is that important? Because they’re in the process of becoming less reliant on just one product, they’re diversifying their business,” Tepper said during the same segment.

Tepper is especially optimistic about growth in Apple’s wearables and services sectors, two areas that focus on recurring revenue.

However, while he owns the stock, Tepper has trimmed his position recently to take profits on the back of its major surge higher. Apple is the best Dow performer this year after climbing 52%.

“Love the company. We’re going to continue to own the stock, but I do believe most of the easy money has already been made,” said Tepper.

EBay is beating Amazon this year, and charts suggest more upside

One e-commerce retailer is soaring past Amazon this year: eBay.

The smaller e-commerce player has surged 40% since January, while Amazon has struggled to keep up with even the broader market gains.

Piper Jaffray chief market technician Craig Johnson sees a clear winner ahead of their respective earnings on Wednesday and Thursday.

“We’ve seen eBay outperform Amazon, 2-to-1 year to date,” Johnson said on CNBC’s “Trading Nation” on Monday. “When you look at the chart, you can see a clear downtrend reversal and you can see a series of higher highs and higher lows and the recent price action is correct, you’re right back to the 200-day moving average, which might I add is trending higher.”

Amazon, meanwhile, looks to be stuck in a range from which it has struggled to break free, Johnson added.

“Amazon is a stock that’s been basically in a two-year consolidation range,” said Johnson. “So I look at these two charts and I would rather play eBay into the quarter rather than playing Amazon.”

Mark Tepper, president of Strategic Wealth Partners, says he’s sticking with Amazon as its growth plans unfold.

“We want to invest in companies that are growing, while at the same time strengthening their competitive advantage, and that’s what you’re getting with Amazon. And the reason Amazon’s been underperforming is because they’re doing the exact opposite of eBay — they’re actually spending money, they’re investing in trying to roll out this Prime one-day shipping, and when that happens investors get worried, it drags down the multiple any time spending goes up with Amazon,” said Tepper.

In the long run, those expenses should pay off and lead to more growth for the company, he adds.

“It’s led to a short-term increase in costs, but it’s strengthening their competitive advantage in the long run,” said Tepper.