Despite all the global uncertainty, Neel Kashkari, PIMCO head of global equities, believes a handful of stocks are attractive right now.
He tells us the key is to find companies that meet the following criteria:
-Prices anchored on strong profits
-Corporate margins to remain strong
-Buying companies based on fundamentals
-Keep focused on managing downside risks
And Kashkari identified 3 names for us.
Although the company is headquartered in Europe, he says, "It doesn’t matter. What matters is where they do business and 50% of Danone sales come from EM." In other words, he thinks the company is well positioned to profit from the emerging middle class. And he also says even if Europe were to fragment, Danone would be relatively insulated. "People would still need to eat."
Kashkari likes the way Spirit runs its business. “They have the highest margins in the airline industry,” he says. “Smaller niche low cost carriers have built strong business models and in an uncertain economy where more people watch costs, they’re well positioned to capture market share.”
A stock that trades in Australia, Kashkari thinks Ausdrill has both near-term and long-term appeal. “We like that in the short-term it pays a 4.1% dividend yield. But also, we see it as a long-term play on commodities prices.”