Are These 4 Stocks Trading At A Discount?

Instead of avoiding the technology sector on valuation concerns, investors should consider investing in different technology names that are trading at a discount to the overall market, Pacer Financial's Sean O'Hara said Thursday on CNBC's "Squawk On The Street."

Cloud Play: The Nasdaq is trading at 38x earnings, but IBM IBM is trading at less than half of that multiple, O'Hara said.

The company is transitioning to the cloud and it generates a large amount of free cash flow, he told CNBC. Investing in IBM gives investors an opportunity to play the cloud space at a much lower valuation than many of the big names in the space, he said.

Related Link: Understanding IBM's Unusual Options Activity

Streaming Opportunities: Netflix Inc NFLX is the biggest name in the streaming space, but the company will be battling growth constraints moving forward, O'Hara told CNBC. 

ViacomCBS Inc VIAC and Discovery Communications Inc DISCA are entering the streaming business and both companies generate ample amounts of free cash flow, he said. 

ViacomCBS has raised some cash and owns content via Paramount, he noted. Discovery is a low-cost input streaming service because it is reality-based, O'Hara said.

"Free cash flow is important in a rising inflation environment," he emphasized.

Price Action: At last check Thursday, IBM was up 0.57% at $140.55; ViacomCBS was down 2.03% at $41.93; Discovery was down 1.69% at $29.06 and Netflix was down 0.28% at $534.48.