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Market Pros' Favorite Fundamentally Sound Stocks

Thursday, 8 Jul 2010 | 5:43 PM ET

Tired of riding momentum and watching technicals? Us too. It’s time to go back to basics and focus on fundamentally sound stocks!

Following you’ll find some of Fast Money favorites -- fundamentally sound – single stock stories!

Karen Finerman

I like infra-red imaging company FLIR , says the Chairwoman. The government is a big customer making them fairly immune to the weak economy. Also, FLIR has a great balance sheet. On top of that, I think it’s a digestible company for someone much bigger in the defense space; rival Argon was taken out at a big price .

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Joe Terranova

My favorite play is Abbot Labs, says the Liquidator. I like that 55% of sales comes from outside the USA; the stock even has some exposure to the emerging markets. Also, they have a great yield and they often raise their dividends. Over the last 5 years the stock has traded between $40 and $60. When the stock gets around the mid-40’s I’m a buyer.

  Price   Change %Change
XTG
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Pete Najarian

I’m bullish McDonald’s says the Pit Boss. I love the growth - they're growing around the globe especially in Asia. Also, they manage themselves so well they typically profit in both the tough times and the good times.

  Price   Change %Change
MCD
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Guy Adami

I'm bullish IBM , says the Negotiator. They have a great balance sheet and a lot of cash on-hand.

  Price   Change %Change
IBM
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Steve Grasso

I'd look at tobacco stocks, says the Governor. Check out Altria as well as Lorillard and Reynolds American . A Supreme Court decision removed huge liability headwinds and they dividend yields are attractive.

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Brian Kelly

Or consider the utility space, says Brian Kelly of Kanundrum Capital. With a 4.7% dividend yield check out Dominion Resources . And talk about too big too fail - if a utility were to go down I'm all but certain the government would step in, there!

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Patty Edwards

My value play is Corning , says Edwards. As a maker of glass for computer gadgets they benefit to the whole hand-held craze. Trading at 8 times earnings how can you not love this as a play on computer growth. Also I like Arrow Electronics , she adds on the Halftime Report. Right now its trading at seven times forward earnings, where in the past five years, it has traded at twelve times. At this valuation I'm willing to bet the manufacturing economy is not dead.

  Price   Change %Change
VFNLFX
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J.P. Mark Of Farmhouse Equity

I’m watching the restaurant space says J.P. Mark of Farmhouse Equity Research. One hot trend is organic ingredients and that benefits Whole Foods and Panera . Family friendly fast foods is another hot trend and that benefits McDonalds, he adds. And Chiptolte bridges both of those trends.

Bid Battle
Discussing tomorrow's bid decision, with Alex Hamilton, C.K. Cooper & co senior analyst.

I’m also watching tech, adds J.P. Mark.Speculation suggests Apple is currently building giant servers in North Carolina in an attempt to set up the largest content library ever. That's potentially damaging to the cable providers.



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Trader disclosure: On July 8, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (GOOG), (AMZN), (MON), (APC), (GMCR), (MYL), (MRVL), (BAC), (ADI), (ADBE), (AKAM), (HES), (CVS), (AXP), (EMC), (ABT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman’s Firm owns (AEO); Finermans’ Firm owns (ANF); Finerman’s Firm owns (BAC) stock and calls; Finerman and Finerman’s Firm own (BAC) preferred; Finerman and Finerman’s Firm owns (BBY); Finerman owns (BP) calls; Finerman owns (C); Finerman and Finerman’s Firm own (CVS); Finerman owns (GLW); Finerman & Finerman’s Firm owns (GOOG); Finerman & Finerman’s Firm owns (HPQ); Finerman & Finerman’s Firm owns (IBM); Finerman & Finerman’s Firm owns (JPM) stock & calls ; Finerman owns (SKS); Finerman’s firm owns (PM); Finerman’s Firm owns (RIG); Finerman’s Firm owns (TGT); Finerman’s Firm owns (WMT); Finerman’s Firm is short (IJR); Finerman’s Firm is short (IWM); Finerman’s Firm is short (MOY); Finerman’s Firm is short (SPY); Pete Najarian owns (DD) Calls; Pete Najarian owns (TJX) Calls; Pete Najarian owns (USB); Pete Najarian owns (CSX) Calls; Pete Najarian owns (CNI) Stock, short Calls; Pete Najarian owns (GNW) Calls; Pete Najarian owns (HPQ), short calls; Pete Najarian owns (MRVL), short calls; Pete Najarian owns (CMC) a call spread; Pete Najarian owns (TCK), short calls; Pete Najarian owns (AMD) calls; Pete Najarian owns (LLC) a call spread; Pete Najarian owns (C) calls; Pete Najarian owns (BAC); Pete Najarian owns (BBY) a call spread

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (AMZN) for clients
Edwards owns (ABT) for clients
Edwards owns (BA) for clients
Edwards owns (BAC) for clients
Edwards owns (BBY) for clients
Edwards owns (BKE) for clients
Edwards owns (C) for clients
Edwards owns (COP) for clients
Edwards owns (CVX) for clients
Edwards owns (DELL) for clients
Edwards owns (DO) for clients
Edwards owns (F) for clients
Edwards owns (FCX) for clients
Edwards owns (GE) for clients
Edwards owns (GLD) for clients
Edwards owns (GOOG) for clients
Edwards owns (GLW) for clients
Edwards owns (HAL) for clients
Edwards owns (HES) for clients
Edwards owns (HPQ) for clients
Edwards owns (INTC) for clients
Edwards owns (JPM) for clients
Edwards owns (JNK) for clients
Edwards owns (MCD) for clients
Edwards owns (MOS) for clients
Edwards owns (MS) for clients
Edwards owns (MSFT) for clients
Edwards owns (NE) for clients
Edwards owns (NSC) for clients
Edwards owns (NVDA) for clients
Edwards owns (PNC) for clients
Edwards owns (QQQQ) for clients
Edwards owns (RIG) for clients
Edwards owns (SLB) for clients
Edwards owns (SPY) for clients
Edwards owns (STI) for clients
Edwards owns (STM) for clients
Edwards owns (TM) for clients
Edwards owns (TM)
Edwards owns (TTM) for clients
Edwards owns (TXN) for clients
Edwards owns (UNP) for clients
Edwards owns (VXX) for clients
Edwards owns (VZ) for clients
Edwards owns (WFC) for clients
Edwards owns (WFT) for clients
Edwards owns (WFMI) for clients
Edwards owns (WMT) for clients
Edwards owns (V) for clients
Edwards owns (XOM) for clients
Edwards owns gold for clients
Edwards owns platinum for clients
Edwards owns silver for clients
Edwards owns the Russell 2000 for clients
Edwards owns the S&P500 for clients

Joe LaVorgna
***No Disclosures***

Dennis Gartman
***No Disclosures***

J.P. Mark
***No Disclosures***

Alex Hamilton
***No Disclosures***

CNBC.com with wires

  Price   Change %Change
ABT
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ARW
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CMG
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D
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FLIR
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GLW
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IBM
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LO
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MO
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PNRA
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RAI
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AAPL
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MCD
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  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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