Stock Picks for a Volatile Trading Day
Investors are weighing a weak jobs report and the threat of bond-insurer downgrades against enthusiasm over Microsoft's bid for Yahoo, causing a seesaw effect in the markets.
CNBC asked the experts where investors should place their bets to make it through the volatility.
Betting on Express Scripts
“We’re looking for stocks that will benefit from an economic slowdown. Also, this is an election year so we’re looking for companies that are going to help with cost containment. I think that’s going to be a priority for lots of companies, and also for the government. So, Express Scripts helps with the pharmacy benefit management program for a lot of large firms, utilities and government organizations. They’ve been able to top anlayst expectations for 11 of the last 12 quarters.
Paul Alan Davis, Schwab Portfolio Manager
Super Bowl Stock Picks
"DirecTV was actually quite a surprise to me. I expected to find a terrible company here, and what I found was a company that has a forward PE of only 15 times earnings...and their earnings are up 28 percent year-over-year, [without] a lot of debt. The stock's about 20 percent off its 52-week high.”
- Brent Wilsey, Wilsey Asset Management President
Wilsey recommends: Best Buy, DirecTV and Brinker International.
Investing in New Media Stocks
"Bankrate should still be getting some traction with its stock price. You have companies like Vistaprint and Shutterfly--those are niche e-commerce players that have very different business models, their revenue growth has accelerated, and they’re still growing north of 40 percent. We like them a lot."
- Youssef Squali, Jefferies & Co. Analyst
Squali recommends: Bankrate , Vistaprint and Shutterfly .
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