Placing Your Bets on Beaten-Down Stocks
Stocks continue to seesaw on fresh recession worries. Cisco's weak outlook pushed tech stocks lower, while retail shares rallied despite poor January sales.
In another volatile day in the markets, CNBC asked the experts where they would place their bets.
Bullish on Wal-Mart
“We think that Wal-Mart should do well in a slowdown in the economy. They’ve got the price positioning that the consumer is looking for right now. And, I actually think that within my … universe, they’re the one name where there’s really not much earnings risk going forward. So, I think, they should continue to do well in this downturn.”
Christine Augustine, Bear Stearns Retail Analyst
________________________________________
Confusing market? Trade with CNBC's experts:
________________________________________
Cisco for the Long Run
“Cisco’s looking at 12 to 17 percent growth, and investors do get too caught up in the short-term. You’re having a hiccup here, maybe it lasts a quarter, maybe its two quarters, but in the long-run, three to five years, which is what I’m always looking at, I think you want to be a buyer of Cisco here.”
John Buckingham, Al Frank Asset Management
Buckingham recommends: Cisco and Perini
Betting on Software Stocks
“We’ve already seen business spending starting to pick up, and we’ve seen consumer spending starting to decline. Software is a key element that will go on either one of those settings. When you look at your retail numbers this morning, you saw the lower end of the spectrum with Wal-Mart not so good. You’re seeing mid-range buying doing pretty well. The mid-range has got money and they’re still wanting to buy gadgets, whether it’s Apple phones or Garmin , and that’s software driven.”
Joe Clark, Financial Enhancement Group
(Contd.)
________________________________________
________________________________________
The REIT Stuff
"We're down 40 percent from the peak, 12 months ago. Most REITs are trading at 20 to 30 percent discounts to their net asset values, so that's historically a very attractive entry point."
Steve Brown, Neuberger Berman Real Estate Fund Portfolio Manager
Brown recommends: Brookfield Asset Management and Equity Residential