Best Trades Now: Airlines, Timber & More
To give investors an edge, CNBC asked the experts for their best trades now.
Beating the Bear with Oil
“I really like Marathon Oil the best… A lot of people don’t really understand Marathon that well, I think. They view it as a refiner, 'cause it’s got a big refiner business, but over the next few years that’s changing. We see the production growing by about eight percent, on average, over the next three to five years. And as that happens, the business is going to become more focused on the exploration of production part. And, I think that investors who hold that stock will be rewarded.”
Phil Weiss, Argus Research Company
Weiss also likes: Chevron , Royal Dutch Shell and Exxon Mobil
Investing for the Long Run
[On FLIR Systems] "They make infrared cameras and thermography cameras...The applications are used by the federal government; 50 percent of their revenue is government-related, mostly serving the Department of Defense. This company has 'unbelievability' into their forward revenue, which is something we like in this uncertain environment."
- David Fording, William Blair Growth Fund Manager
Fording also likes: DeVry , IDEXX Laboratories and Fastenal.
Investing? Stay up-to-date!
Investing in Timber Stocks
"Timber is not normally correlated very highly with stock and bond markets, but I also think it's a wonderful time to get in...The reason you want to get in is sort of the inherent economics of a tree: As a tree grows, obviously the volume increases, but, also, the per-unit use of that volume increases in price."
- Kent Croft, Croft Value Fund Portfolio Manager
Croft likes: Plum Creek Timber and Weyerhaeuser.
Taking a Chance on Airlines
“These are very speculative bets at best. We think Delta’s best positioned to benefit, because ... first of all their stock got hammered more than anybody else’s and their merger with Northwest will provide them the mechanism to cut capacity more than the rest of the industry, and we think they’re doing some smart things on their fuel hedging program as well.”
- Jim Corridore, S&P Airline Equity Analyst
Corridore also likes: Southwest Air and Northwest Airlines .