CNBC Stock Blog

Stock Pickers: Prep Your Portfolio for Next Week (Pt.1)


Charlie Smith, CIO of Fort Pitt Capital Group, Wayne Kaufman, chief market analyst at John Thomas Financial, and Mike Khouw, director at Cantor Fitzgerald, told CNBC how investors can prepare their portfolios for the week ahead. (See their stock picks and recommendations, below.)

The Friday Trade

“The market is working off an overbought condition—we have options exploration next week, so we probably go down sometime into next week,” Kaufman told CNBC.

Investors "should definitely be buying—although you should wait a little bit until next week.”

Kaufmann said the markets are going to go higher in the long run and added that monthly charts do not call for any tremendous downdrifts that some people are predicting for September and October.

Kaufman Likes:

Simple Tech

iShare DJ RealEst —“We like real estate...stocks that got killed have been recovering dramatically, said Kaufman. "A lot of them are REITs and financials and we’ve been buying them."

Prudential Financial



“I particularly like the insurance sector,” he said. “These stocks should be going a lot higher over time. Everybody still needs to buy insurance.”

Khouw's Recommendations:

Chevron —“Oil’s pulled back a little bit…they are one of the big integrated oils and trades at a discount compared to some of the other integrated oils,” Khouw said of the company. “It has a little less natural gas exposure compared to ConocoPhillips . If we really believe that we are coming out of the recession, you want to be 'long' some of these names.”

Khouw suggested investors should be cautious about Robert Half International . “This is a name that is trading at or above this time last year and, obviously, it’s in a very different place," he said. "Year over year, the last quarter, they had about a 39 percent revenue decline and they're trading at a pretty rich multiple."

"If you own it, I'd take, probably, a second look at whether you've had quite a good run in this name,” he said.

More Investing Advice:



Khouw does not own shares of Chevron or Robert Half International.

No immediate information was available for Kaufman or his firm.

CNBC Slideshows: