- Craig Hodges, co-portfolio manager of the Hodges Blue Chip 25 Fund, says he is going bargain hunting in the beaten-down energy sector because he sees oil eventually rebounding toward $80-$90/bbl.
- Hodges particularly likes Continental Resources (NYSE:CLR), which has dropped from $60 to the low $30s because it is a big driller in the relatively higher-priced Bakken Shale, but he expects a significant rebound when the energy sector normalizes; Helmerich & Payne (NYSE:HP) has lost 40%-45% of its value in recent weeks, but it is a very longstanding, high-quality maker of flex rigs for drillers.
- The Hodges fund's top holding is U.S. Steel (NYSE:X), whose cost cuts since 2008 have the company structured so that its stock will surge when it enjoys a resurgence in demand; other stocks he likes for the long term include TRN, TCBI, BA.