Meryl Witmer Picks 3 Growth Stocks for 2008 - Barron's

Barron's 2008 Roundtable member Eagle Capital Partners' Meryl Witmer bucks the trend by picking two housing-related stocks and a fashion retailer as high-octane stocks for the coming year.

• Mohawk Industries (MHK) - together with Shaw (owned by Berkshire Hathaway (BRK.A)) they rule 60% of the U.S. flooring market. Less than 18% of its sales are related to new-home construction, while about 80% of its revenue are on replacements - which have been stable. CEO Jeff Lorberbaum is smart and motivated; his family holds an 18% stake in the company. The company is a cash machine. Shares ($71) could hit $115 when investors turn rosier on housing.
• Whirlpool (WHR) - the largest U.S. brand-name appliance maker, it's moving quickly into Europe, Asia and Latin America. Its 2006 acquisition of Maytag will start to play a role in the form of greater-than-expected cost savings and Maytag's underdeveloped product pipeline that Whirlpool is concentrating on.
• American Eagle Outfitters (AEO) - best-of-breed teen mall retailer. CEO Jim O'Donnell (CEO of Gap (GPS) in its best years) has rebuilt the brand by focusing on high-quality goods at reasonable prices. Investors are over-concerned with 2007's reduced earnings growth, which was a by-product of an unusually strong 2006.

Comments

[lefty:]

Until this (session), wheather it be resession, depression, or just an anomoly, starts to correct. Stay with the necessities. You replace carpet, buy new appliances, and give your teens fad money, only after the grocery, fuel, and medical bills are paid. Discretionary income is almost at ZERO.

2008 Jan 22 06:09 AM