Which stocks should investors be buying into next week? Barbara Marcin, portfolio manager at Gabelli Blue Chip Value Fund, and Peter Andersen, portfolio manager at Congress Asset Management Company, shared their best plays.
DirecTV —“It’s a tremendous cash generator and we’re looking for companies that both have growth and strong cash generation over the next few years,” Marcin told CNBC.
Sally Beauty —The beauty-supply firm "opened up at 150 stores this past year and its earnings are projected to grow about 40 percent over the next year,” Andersen said of the firm.
Motorola —“Motorola is the underdog right now but it’s embarking on a spinoff—it’s splitting itself into two companies and if you look historically, they’re usually misunderstood at the IPO pricing point and they will come in undervalued.”
“Secondly, if you look at the details of what the company has disclosed as to how they’re going to structure the spinoff, it looks very attractive,” he continued.
“They’re taking $4 billion and pledge it to the handset business division of the split-off. So even though it’s going against Apple , it’s coming out of the blocks with a very strong capitalization and the best competitive position they could.”
Scorecard—What They Said:
- Andersen's Previous Appearance on CNBC (June 9, 2010)
- Marcin's Previous Appearance on CNBC (May 21, 2010)
More Stock Opinions—Read and Decide:
- 10 Winning Tech Picks for Investors: Strategists
- Banks to See Uptick in M&A—Buy These Now: Analyst
- Avoid GDP Growth Slump—Invest Here: Portfolio Manager
CNBC Data Pages:
Andersen and his firm own shares of MOT and SBH.
Marcin and her firm own shares of DTV, PEP and ADP.