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Current DateTime: 01:01:02 24 Nov 2009
LinksList Documentid: 30328029
You Can't Go Wrong With 'Best of Breed' Stocks: Analyst
Published: Thursday, 23 Jul 2009 | 10:28 AM ET
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By: JeeYeon Park
CNBC News Associate

Is this the right time to take risks or should you stick with the safer best of breed”** stocks? Kevin Caron, market strategist at Stifel Nicolaus, and Steve Grasso, market analyst at Stuart Frankel, shared their stock picks and their market strategies.

“You can’t go wrong with ‘best of breed’ stocks,” Grasso told CNBC. “In this environment, where people are so worried about volatility, you’ve got to stick with companies that have performed. So stick with best of breed until the market has really proved itself.”

In the meantime, Caron told investors to consider companies that have solvent balance sheets.

“Tech is clearly that,” said Caron. “I’d add health care in there as well and that produces free cash flow that supports dividend and capital spending.”

Caron Recommends:

Apple [AAPL  Loading...      ()   ]

Oracle [ORCL  Loading...      ()   ]

Palm [PALM  Loading...      ()   ]

IBM [IBM  Loading...      ()   ]

Grasso Recommends:

Goldman Sachs [GS  Loading...      ()   ]

JPMorgan Chase [JPM  Loading...      ()   ]

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** Best of Breed:

Stocks that represents the most optimal investment choice for a specific sector or industry due to its high quality compared to its competitors.

Visit the CNBC Education Center for full Financial Glossary and more.

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More Investor Intelligence:

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Disclosures:

Caron’s firm Stifel Nicolaus owns shares of Apple, Oracle, Palm and IBM.

No immediate information was available for Grasso or his firm.

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© 2009 CNBC.com
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Current DateTime: 12:11:45 24 Nov 2009
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