4-Star Stock Picks for Wednesday
A scuffed-up shoe company and a shining entertainment giant are unlikely companions in the good graces of John Buckingham, the chief portfolio manager of Al Frank Asset Management.
His four-star fund has earned an average of more than 15 percent per year for the last five years.
Recommendations:
On the top of his list is trendy footwear maker Crocs.
"This is a stock down from 75 to single digits, because their earnings have fallen off a cliff, but they're still expected to earn $1.60 to $1.70 a share this year," he told CNBC. "Valuation-wise...Crocs is an excellent, undervalued stock, trading at six times earnings."
He admits the credibility of the company's management has been badly damaged -- but points out that international sales have recently risen as much as 80 percent.
Buckingham also likes the Walt Disney Company.
Disney is now trading around 15 times earnings; they continue to beat expectations, and last quarter they had fantastic numbers," he said.
"Here's a company that is the premier media play out there...gas prices are so high, it's kept a lot of people at home, and the weak dollar has brought a lot of people to the theme parks here in the U.S."
