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S&P Best & Worst Stocks—What to Buy/Avoid: Analysts

Wednesday, 9 Mar 2011 | 11:51 AM ET

On the two-year anniversary of the March 2009 bottom, Andrew Kligerman, life insurance analyst at UBS, and Terry Bivens, food analyst at JPMorgan, told investors which names they should be buying and avoiding.

Best of Times- And Worst
Genworth Financial is soaring more than 1,300% just as Dean Foods is dropping roughly 50% over the last two years, with Terry Bivens, JP Morgan Food Analyst, and Andrew Kligerman, UBS Analyst.

Since the lows, Genworth Financial has soared more than 1300 percent, making it the top stock on the S&P 500, while Dean Foods declined roughly 50 percent, putting it at the bottom of the index. The analysts offered their take on the stocks.

Genworth Financial:

Hang on to this stock, recommended Kligerman.

“It had a wonderful run, but stalled due to the concerns about U.S. mortgage insurance,” Kligerman told CNBC. “We think they get cleaned out—it might take a year or two—and the stock works.”

Kligerman has a $22 price target on the stock.

Dean Foods:

“Dairy prices went to all-time lows in the spring of 2009, and the grocers used the opportunity to go bargain-basement with milk prices—and they crushed Dean’s margins,” said Bivens.

While the environment has stabilized for the company, Bivens said he still doesn’t see an upside ahead for the stock.

“I’d like to see a pick up in U.S. milk volumes—Volumes have been dreadful lately.”

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Scorecard—What They Said:

  • Bivens' Previous Appearance on CNBC (Jun. 28, 2010)
  • Kligerman's Previous Appearance on CNBC (Jan. 24, 2011)

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More Market Intelligence:

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CNBC Slideshows:

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CNBC Data Pages:

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Wednesday's Top Dow Gainers (as of this writing):

IBM

Merck

AT&T

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Disclosures:

Kligerman has investment banking clients who own shares of GNW.

GNW is, or within the pat 12 months has been a client of UBS Securities and non-investment banking securities-related services are being, or have been, provided.

Within the past 12 months, UBS Securities has received compensation from GNW.

Bivens has investment banking clients who own shares of DF.

JPMorgan acted as lead or co-manager in a public offering of equity and/or debt securities for DF within the past 12 months.

JPMorgan has received compensation in the past 12 months for services other than investment banking from DF.

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Disclaimer

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IBM
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MRK
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