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May.12
1:37 PM ET
Monday, 12 May 2008
Top Picks Among the Top Names

These stocks are well-known, they're earning money, they're reasonably priced -- and David Scott thinks investors ought to own them.

Scott's four-star Chase Growth Fund is up an average of 11.5 percent per year over the last five years.

Recommendations:

His first pick is Aflac [AFL  Loading...      ()   ].

"There are very few financial stocks that we think are attractive," he told CNBC.  "Most of them are tainted by lending problems...but Aflac is not; 70 percent of their business is in Japan; in the supplemental insurance area, they've reported a very nice earnings pattern in recent quarters."

He also likes Wal-Mart [WMT  Loading...      ()   ].

"Wal-Mart has finally got its act together," he said. "The last three or four same-store sales reports have been positive; the last earnings report was very positive; they're going to report earnings later this week, and we expect they'll beat the estimate."

Wal-Mart has benefited from consumers "trading down" during the economic slump, but he thinks the company will be well positioned to thrive during recovery, too.

Web Extra -- Bonus Picks For CNBC.com:

Scott also offered stock recommendations exclusively for this Web site's readers. He recommends IBM [IBM  Loading...      ()   ] and McDonald's [MCD  Loading...      ()   ].

Disclosures:

Scott owns Aflac and Wal-Mart through his fund.

Disclaimer

© 2008 CNBC.com

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