Invest in These 'Well-Valued' Stocks: Equity Analysts
Markets continued rallying on Thursday on better-than-expected jobless claims figures and retail sales data. Charles Crane, managing director at Douglass Winthrop Advisors, and Kim Caughey, vice president and senior equity analyst at Fort Pitt Capital Group, shared their insights.
“The valuation on stocks is pretty reasonable,” Crane told CNBC.
“There are individual stocks within the market that are pretty well-valued.”
Crane advised investors to look into Sysco .
“They’ve got pretty good growth prospects over the course of the next three years,” he said of the food distributor. “Over the last three years, the price earnings ratio on this stock has been cut in half, dividend is 3.4 percent. I think it’s a reasonable value here.”
In the meantime, Caughey said the strong retail sales numbers could boost markets.
“I would go one of two places—either focus here in America with Dell ,” she recommended. “Or look overseas with Joy Global .”
“There are pockets in IT,” she said of Dell. “It’s not immediately apparently that the cycle has turned for IT…Hewlett Packard has some business-focused PCs, but Dell by and large is going to benefit from the [corporate] refresh cycle.”
As to Joy Global, Caughey can benefit from the demand for "all the commodities that can be taken out from the ground" overseas.
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No immediate information was available for Caughey or Crane.