Investors should look for “reasonably valued stocks” that pay dividends and also have a growth catalyst, said Alan Gayle, senior investment strategist at RidgeWorth Capital Management.
“In this market, which has doubled since March ‘09 [lows], there are still some good values across the board,” Gayle told CNBC.
Gayle’s Picks:
Southwest Air—“They’ve just executed their merger with AirTran…and we’ve been noticing some ability to pass along the fuel price increases,” he said. “Even if it’s in the domestic market, they’re going to be able to generate higher traffic volume and they’re doing a good job in trying to maintain profit margins.”
Staples
Whirlpool
Comerica
PPL
Meanwhile, Paul Dietrich, president and CIO of Foxhall Capital Management, also shared his top plays.
Dietrich’s Picks:
ExxonMobil
Rio Tinto
Spanish Mountain Gold —“[This firm has] the cheapest in-the-ground gold in the world, in a stable place—Canada,” he said of the firm. “With all the cost involved, you can buy gold for $1,050 an ounce and given the current price of gold, that’s a 25 percent discount. It’s on the Canadian stock exchange.”
Empressa National de Electricidad —“This company provides quasi-monopoly electrical services to Brazil, Argentina, Chile, Colombia and Peru—some of the fastest growing countries in Latin America,” said Dietrich. “[The firm has] huge cash flow generator and has great growth prospects.”
AmBev
America Movil
Johnson & Johnson
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Scorecard—What He Said:
- Gayle's Previous Appearance on CNBC (Mar. 17, 2011)
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More Market Intelligence:
- Seven Flatlining Stocks in Need of the Paddle
- Markets to Chase All-Time Highs This Year: Stock Picker
- Stock Valuations Are Still 'Quite Reasonable': CIO
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CNBC Data Pages:
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CNBC Slideshows—FYI:
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Disclosures:
Dietrich owns some shares of SPA.V.
Gayle owns shares of LUV, SPLS, WHR, CMA and PPL through his RidgeWorth Funds.
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