Jeff Utz, US equity project manager at Credit Suisse, likes "names that go against the grain." He shared his best contrarian plays with investors.
Best Buy—“We think this is a misunderstood story,” Utz told CNBC. “The consensus opinion is that the product story is over and there’s nothing to look forward to in 2010, but we disagree.”
Utz said there’s pent-up demand on the appliance side and there will be strong demand for products such as digital 3D televisions going forward.
Abercrombie & Fitch—“There are about 20 holds or sells on this name and the consensus opinion is that the brand in the U.S. is dead,” he said of the firm.
Acme Packet—“One of our favorite small cap names…We see a 30 percent plus, 3 to 5 year growth rate,” he said. “That’s another high conviction idea. There are 5 holds on that name and it’s not covered very well, but it’s a matter of time before the rest of the Street reaches the same conclusion that we have.”
Dow Chemicals—“We think there’s more upside,” Utz said. “We’ve got a $39 price target and we think the Street is missing the earnings potential in Dow.”
In addition, Utz said he is concerned about the markets and advised investors to be defensive in their portfolios, focusing on consumer staples, health care and utilities.
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Utz does not own any shares of DOW, BBY, ANF, NBR or APKT.