CNBC Stock Blog
- How Stock Investors Can Play Holiday Travel
- 3 Growth Opportunities in Tech: Analyst
- Prep Your Portfolio for Next Week: Stock Pickers
- Global Growth Good for Portfolio: Stock Picker
- Expect Tech Sector to Rise in Q4: Strategist
- Expect a 5-10% Market Pullback: Stock Picker
- 3 Stock Picks for This Volatile Environment: Portfolio Manager
- 3 Financial Stocks May Lead Final Rally: Market Researcher
- Gold's 'Money' Value is $4,000 to $11,000: Market Strategist
- Commercial Real Estate Bottom Near: Market Pro
- How Stock Investors Can Play Holiday Travel
- Time Lapse World Series Is A Great Play
- Hirschhorn: Greed...or Fear
- My Top 10 Tech Toys for the Holidays
- iPhone a Better Gaming Platform Than Android?
- May Day For Dendreon
- 100% Mortgage Financing From USDA
- Holiday Tipping: Who And How Much
- Deep Discounts Should Make It a Very Tech-y Holiday
- The Richest Members of the US Congress
- New Consensus Sees Stimulus Package as Worthy Step
- Wall Street Jobs Slow to Return Despite Record Profits
- Thanksgiving Week Stuffed With Economic News
- Black Friday Deals May Not Signal Retail Comeback
- Investors to Goldman: Be Less Greedy
- UPS Sets New Rates For 2010
- Victoria's Secret Hopes to Rekindle Desire for Lingerie
- 'New Moon' Takes Record $72.7M Box Office Bite
RSS FEED
Text Size 
CNBC News Associate
Nearly 80 percent of S&P companies have beat earnings expectations—is this due to low earnings estimates or is it a sign that the recovery is real? Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds, and Tyler Dann, senior research analyst at Invesco Aim, shared their ideas. (See their stock picks, below.)
“To some extent, there are some bright spots in the quarter,” Dann told CNBC.
“At the same time, it’s getting beaten over the head repeatedly—and then finally not having that happen. Things are really not better, but you don’t feel as bad. That’s kind of how things have been.”
CNBC Data Pages:
Dann said far fewer companies are exceeding sales estimates and investors are giving a “hall pass for better earnings with a little tepid sales.”
“We look for growth value anomalies,” he said. “Companies that are still growing, but are facing temporary controversy, which means that valuation have become depressed.”
More Market Intelligence:
- 7 Oil and Gas Stocks You Need: Oppenheimer Pros
- Market Coach: Top 3 Trading Questions—Answered!
- Falling VIX a 'Very Bad Sign': Market Expert
In the meantime, Cuggino said investors shouldn’t discount the cost-cutting effects on earnings, adding that it’s “a healthy thing.”
“Sales forecasts continue to be light in most cases. That is an overhang on potential future growth, although I think that’s going to take care of itself with the growing economy going forward,” he said.
Dann Likes:
Nokia [NOK
Loading...
()
]
Symantec [SYMC
Loading...
()
]
Cuggino Likes:
Morgan Stanley [MS
Loading...
()
]
FedEx [FDX
Loading...
()
]
BHP Billiton [BHP
Loading...
()
]
Cuggino Avoids:
Big Banks
______________________________
CNBC Slideshows:
______________________________
______________________________
Disclosure:
No immediate information was available for Cuggino or Dan.
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes