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3 ‘Warnings Season’ Winners: Hickey

Tuesday, 19 Mar 2013 | 6:13 PM ET
3 'Warnings Season' Winners
Tuesday, 19 Mar 2013 | 5:30 PM ET
Three stocks look strong ahead of earnings, Paul Hickey of Bespoke Investment Group says.

Three stocks look strong ahead of earnings, Paul Hickey of Bespoke Investment Group said Tuesday.

On CNBC's "Fast Money," Hickey said that he was parsing the higher number of negative revisions than positive revisions going back to May.

"What we want to focus on here is companies that have domestic exposure, strong dollar, and they've outperformed the market and they've actually seen about 25 percent more negative revisions to positive revisions," he said. "Whereas international companies with more than half their revenues overseas have seen 50 percent more negative revisions to positive revisions."

Specifically, Hickey said that he liked three companies that see more than 90 percent of revenues from the United States.

  • "AutoZone's been a big winner," he said. "It's the top-performing stock that was in the S&P 500 in 2007 that's still in it today." With more aging vehicles on the road, the company's shares have more upside, Hickey added.
  • DaVita was a play on the growing obesity epidemic, with the largest dialysis unit in the United States and a $1 billion Berkshire Hathaway stamp of approval, Hickey said. "It's a high-growth sector, unfortunately."
  • Raymond James has "no baggage from the financial crisis," Hickey said, as well as no exposure to Europe.

Trader disclosure: On March 19, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Dan Nathan is long AAPL APR/MAY 460 CALL SPREAD; Dan Nathan is long MS APR 22/21 PUT SPREAD; Dan Nathan is long AMZN APR 240/200/160 PUT FLY; Keith McCullough is long TLT; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long DIS; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short MDX; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU.

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