What should investors be looking at? Here's what guests on CNBC are recommending today ....
Betting on Auto Parts
"The drop-off in new car sales means that older cars are driving around. Older cars are out on the road and, anybody who has an older car knows you need to maintain that. That’s gonna be very positive for auto part makers, specifically for auto part retailers, specifically AAP [Advance Auto Parts] … They’ve got new management in place, which is really energizing the company."
David Lutz, Stifel Nicolaus managing director
Investing in Homebuilders
“There are a couple names that we like: Centex or Ryland… Names that have less land; they’re going to have less impairments and they’re better positioned to pick up cheap land when it does come on the market… There are certainly some you can buy despite the weakness we’re seeing today.”
David Golberg, UBS analyst
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“AIG , like many of the credit-sensitive financials, has really taken a tumble this year, down more than 50 percent year-to-date. Our fund has been avoiding the financials after the early part of 2007…we’re just starting to dip our toe back in, and AIG (is a) wonderful company, great global franchise, selling at 60 percent of book in the mid-20s where we picked it up recently.”
Marian Kessler, Becker Capital Management Co-Portfolio Manager
Kessler also likes: Amgen and Zimmer Holdings
Tech & Homebuilder Plays
"Two tech companies I like, very different companies. Broadridge (Financial Solutions), which is a higher-quality, less-sexy tech name; they do securities processing...(and) Apple, a much better-known name."
David Sowerby, Loomis Sayles & Co. Portfolio Manager
Sowerby also likes: Pulte Homes
Profiting From Power Upgrades
"The one pure-play transmission company is ITC Holdings...They own nothing but transmission lines, own, operate, and build them, and also stand to benefit very well from that. The Energy Policy Act of 2005 put together a number of incentives for transmission investment...that allow a company like ITC to benefit very significantly."
Andrew Smith, JPMorgan Utilities Analyst
Smith also likes: Entergy and Dynegy.