Hidden Gems: Three Stock Picks From a Top Fund Manager
Scott Reeves
Steve Neimeth, manager of the Morningstar five-star rated SunAmerica Focused Growth & Income Fund, joined "Morning Call" to offer his “hidden gem" stock picks.
But Neimeth saved the following recommendations exclusively for CNBC.com:
Constellation Brands – The company distributes about 200 brands of beer, wine and spirits in the United States and the United Kingdom, including Corona and Tsingtao, Almaden, Banrock Station, Hardys and Arbor Mist. It also makes premium wine, including Ravenswood and Simi. Neimeth says the company is one of the leading distributors of wine and sprits in the U.S. It has a stable business model and is largely recession proof. He says a drought in Australia could benefit pricing.
UnitedHealth Group – The second-largest health insurer in the United States (behind WellPoint) offers a range of healthcare plans and services. It manages HMO, PPO and POS (point-of-service) plans as well as Medicare and Medicaid options. It serves members of AARP through its Ovations unit. Neimeth says it’s a high-quality stock near at or near at 52-week low. He says the stock has been overly discounted due to concerns over the 2008 election, issues with option grants and slowing growth.
Bear Stearns – The company is one of the top investment banking, clearing and brokerage houses in the United States. It serves global companies, institutional investors and wealthy clients. Neimeth said Bear Stearns is the cheapest of the brokerage group with good growth prospects. He expects the company to post strong earnings next quarter.