With earning season in full swing, where should investors look to put their money? Brent Wilsey, president of Wilsey Asset Management, and David Katz, chief investment officer of Matrix Asset Advisors, shared their insights.
“For the last 6 to 8 weeks, things look good,” Wilsey told CNBC.
“People need to start reading what companies are doing and saying because things are very good.”
Wilsey advised investors to buy companies such as Nucor and Nvidia .
In the meantime, Katz said 80 to 83 percent of companies that have reported earnings so far have beat expectations and he sees the trend continuing.
“We focus on areas that companies have been beating like the industrials and energy stocks,” he said. “The nice thing about this earnings season is that it allows the markets to go up for the next few months as the negative psychology dies down.”
Katz said he expects strong earnings and outlook from Western Union on Tuesday.
In addition, he predicted Dell will “start getting their act together” after reporting disappointing earnings for the last few quarters.
“We think their stock will be 40 to 60 percent higher in the next 12 months,” he said of Dell.
Scorecard—What They Said:
- Katz's Previous Appearance on CNBC (Jul. 14, 2010)
- Wilsey's Previous Appearance on CNBC (Jul. 19, 2010)
Market Views—Across the Board:
- Nucor CEO on Earnings, Economy
- This Trading Range Will Break Higher: Stock Picker
- Options Action: A Trade For Earnings Season
CNBC Data Pages:
No immediate information was available for Wilsey or his firm.
Katz, his family and firm own shares of MSFT, STJ, STT, BAC, JCI, DELL and WU.