Kudlow’s Money Politics

Kudlow’s $tock Club

(Here are last night’s stock picks from David Sowerby, chief market analyst and portfolio manager at Loomis Sayles and Company. Mr. Sowerby manages the four-star Morningstar-rated Loomis Sayles Tax-Managed Fund Fund (LSCGX) – YTD it’s up over 10 percent.)

Chuck E. Cheese (CEC): “Restaurant stocks look attractive. Chuck E. Cheese is a smaller company on the restaurant side, but doing what I like to see: share repurchases, catalyst for more traffic going through the restaurants. That’s a name that I like on the consumer side.”

CVS Corp. (CVS): “CVS is a longer-term wealth creator whose stock is down more than 10 percent in the face of the great PR play that Wal-mart has made. But this is affecting CVS only about one script per day in their Florida stores. I think it’s a longer-term stock that can grow earnings of 14 to 15 percent. The company raised its guidance today. I’m finding a better entry point to be a buyer of CVS here.”

Honeywell (HON): “On the industrial side I think Honeywell looks attractive. Both as a soft defense play, as well as their diversified industrial makeup.”

Corning (GLW): “On the technology side, I like the LCD, liquid crystal display demand that’s continuing to take place at Corning. The stock was weaker in the summer. But expectations have been raised. The sales have been better, and Corning is a name that I favor.”

Zimmer (ZMH): “This is on the health care side. The stock was weaker earlier this year. It’s gained traction again as a longer-term wealth creator that I’ve been able to enter at a more attractive price for the ever-growing demand for orthopedic services.”

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