Muddled by inconsistent earnings and stock performances, one sector appears tougher and tougher to predict, CNBC's Jim Cramer says.» Read More
Consumer staples and energy are on Ralph Shive's stock-shopping list.
His five-star First Source Monogram Fund is up an average of 13.72 percent per year over the last five years.
Kimberly Clark tops his picks.
"In the consumer space, we prefer consumer non-discretionary," he told CNBC. "You can't live without diapers and Kleenex, and that's what Kimberly Clark does."
He's not worried about a possible rebound in oil prices.
"They can pass the costs along, I believe, because they're non-discretionary items," he said.
His energy play is Williams Companies.
"We're constructive on energy over the long term," he said. "Williams has come off pretty sharply in this energy correction; we think it's a relatively stable company within that space, and they have pipelines, which is a nice steady business."
Disclosure information for Ralph Shive was not immediately available.
Michael Yoshikami is rounding out the week with an eye toward quality.
The president and chief investment strategist of YCMNET Advisors picks two Dow Jones industrials as his Friday trades.
His first pick on the last day of the week is Johnson & Johnson.
The U.S. markets closed up Thursday -- despite higher inflation and joblessness data.
Is this a bear market rally or are declining oil prices at the heart of it?
Jack Bouroudjian, chairman at Capital Markets Technology, joined Steen Jakobsen, global head of asset management, executive director & CIO at Saxo Bank, to give their insights to CNBC.
More CNBC Investor Intelligence:
Stocks in the news Friday:
- Lehman Bros.
- NRG Energy
Yogi Berra once (allegedly) said, "If you come to a fork in the road, take it." Ken Kam thinks the market is at a crossroads, and investors face quite a challenge deciding where to go next.
The president and chief investment officer of Marketocracy Masters 100 outlined for CNBC the questions that he thinks must be answered: Are we past the major part of the financial crisis? Are the oil prices going to stay down significantly? And... how should investors prep for the answers?
Despite the recent tumble in the price of oil, Kam likes Occidental Petroleum.
"You have to look at a map, and see where Occidental gets its major sources of oil," he explained. ""Libya is one of the safer places to get oil nowadays, and secure access to oil supplies is one of the reasons Occidental looks particularly attractive right now."
He also recommends MasterCard despite its financial exposure and the consumer slowdown.
"People are not able to borrow on their home-equity lines of credit as easily any more," he said. "They're shifting their borrowing to credit-card use; in the second quarter of this year, MasterCard reported that revenues grew 25 percent. Imagine that! A company the size of MasterCard able to grow revenues 25 percent at a time when the whole worldwide economy was slowing down!"
Elan is on his list as well.
Two mega-investors -- Warren Buffett and Carl Icahn -- made major portfolio shifts.
Watch video at left for update on Buffett and Berkshire Hathaway .
Stocks mentioned in interviews include:
- Union Pacific
- Time Warner
- Biogen Idec
- Anadarko Petroleum
The shorts are back! Trading resurged following the expiration of the SEC's temporary ban against "naked" short selling of 19 financial stocks.
On Thursday, Jon Najarian, Fast Money regular and co-founder of OptionMonster.com, discusses the expiration -- and why shares of entities like Fannie Mae slipped.
More CNBC Investor Intelligence:
The global slowdown and the financial meltdown don't faze Randy Bateman. The chief investment officer of Huntington Funds has his eyes on a global infrastructure play and a bank.
His Huntington Situs Trust Fund is up an average of 14.48 percent per year over the last five years.
Bateman likes Trimble Navigation.
"The global slowdown would be a problem for everyone, but I'm not sure I necessarily believe in it," he told CNBC. "In this country, we know we're going to have to spend upwards of a trillion dollars on infrastructure build; that's got to take place pretty quickly, and if you add that to what's taking place in the rest of the world, I think...Trimble Navigation is in an excellent position."
He's also enthusiastic about Cullen Frost Bankers. That's right, a bank. Bateman says the secret to that stock is where the bank is located.
"One of the things that's hurt the other regional banks is the economy, and the economy has been sapped, in part, because of the rising fuel costs," he explained. "Texas, on the other hand, has been a beneficiary of those, and Cullen Frost happens to be one of the oldest institutions in Texas, is solely within the boundaries of Texas, and certainly, that economy is doing much better than the economy as a whole."
Size doesn't necessarily matter when it comes to five-star investing. Just ask Frank Sustersic, portfolio manager for Turner Investment Partners.
His small-cap Turner Emerging Growth Fund is up an average of 16.40 percent per year over the last five years. It's currently closed to new investors, but Sustersic is willing to share some of his favorite names.
Some of his favorite stocks are clinical-research organizations, or CROs.
A fluid more valuable than oil, and playable in the stock market? That pretty much describes water, and Ryan Connors of Boenning and Scattergood is an expert in water companies.
"The trends driving water are very long-term," he told CNBC. "Most people, when they think of water, they think of brushing their teeth or doing their dishes, and the reality is, water is very much an industrial commodity."
So how to play in water?
"There are really two different sides to the industry," he said. "One is the water-utility side, which would be more suitable for more conservative investors; two of the companies that we like there, that do have some scale, are Aqua America and American Water Works."
He finds that both companies have consistent growth profiles and offer solid dividend yields.
"On what we would call the equipment and technology side of the industry is where you get some of your more aggressive plays," he said. "A couple of companies we like on that side would be Ameron International and Northwest Pipe."
Both of those companies make large-diameter long-distance water pipelines.
How does a five-star fund manager play this volatile market? Mark Keeley of Keeley Asset Management does it with health care and energy stocks.
His five-star Keeley Small Cap Value Fund is up an average of 19.66 percent per year over the last five years, and even shows a gain of nearly 3 percent year-to-date.
"We're looking for undervalued stocks, and that takes us across all market caps and industries," he told CNBC. "We're best known for our work in the small-cap space, and we're still finding value in this market."
Among the names in which he's finding value is Pharmerica.
"Pharmerica was spun off last year from Amerisource Bergen," he said. "It's a pharmaceutical outsourcing company...it's definitely a good place to be, and a good way to participate in the changing demographics as it relates to health care."
He also likes Hill-Rom Holdings, a spin-off from Hillenbrand Industries that makes beds and furniture for hospitals.
"They are definitely a vertically-integrated company, as along as you stayed horizontal," he joked. "We see tremendous opportunity in the hospital-bed business."
Continuing on the "horizontal" theme, Keeley likes Superior Well Services, which specializes in the field of horizontal oil-well drilling.