Best Trades Now: Multinationals & Rails
To give investors an edge, CNBC asked the market pros for their best investment advice now.
Bullish on Electricity
“They’re [Calpine Corporationand Reliant Energy] electricity producers. They’re unregulated, independent power producers here in the U.S. You’ve seen coal prices explode; natural gas is also on the rise. But all of this is happening even before we’ve even hit summer weather. And, it’s expected to be hotter than normal this summer, which is going to be tough. Electricity prices are going higher.”
Jerry Jordan, Jordan Opportunity Fund
Jordan also recommends: Weatherford International and Nucor
Riding the Rails
“We like Norfolk Southern …and Burlington Northern, ticker symbol BNI . We like BNI because it’s really a defensive play right now within the market…Commodity prices have been up astronomically over the last 12 months -- coal, ag and other commodities types. What BNI has, and what it does really well, is it has a large exposure to more defensive commodity types.”
Lee Klaskow, Longbow Research
[On Canadian National] "You have to ask yourself, 'What else could go wrong with this company?' You look at first quarter, you had weather, you had currency, plant shutdowns...it's lagged its peers, its valuations are at a discount, any good news coming out of its end markets should benefit that stock."
Kevin Kirkeby, Standard and Poor's
European & Multinational Plays
Because of the problems in the U.S. market, multinationals growth companies are particularly cheap and attractive, because of the problems we’ve had domestically.
Jim Awad, WP Stewart Asset Management
Awad likes: General Electric , United Technologies , Automatic Data and Fastenal