Shares of Masco surged this summer after the company surprised Wall Street with a strong second quarter performance. Arun Daniel, portfolio manager for the JOHCM U.S. Small Mid Cap Equity fund, said he expects the home improvement and building products maker to build on those gains this fall. 'While the top line is going to grow only 6%, you are going to see earnings growth in excess of 20%,' said Daniel. 'That has not been fully realized yet in the stock and so we believe this will outperform the market.' Shares of Masco (MAS) are up 21% year-to-date. The JOHCM U.S. Small Mid Cap Equity fund (JODMX) is up 4% so far in 2015. Daniel is also bullish on shares of Signet (SIG), up 5% thus far in 2015, saying the jeweler’s stocks is sparkling compared to that of rival Tiffany & Co., down 24% year-to-date, because it has less exposure to foreign demand and currency changes. 'Signet has recently acquired Kay Jewelers so there is also a lot of opportunity, low hanging fruit if you will, on integration,' said Daniel. 'That is yet being realized by the Street. Over the next two years we are going to see top line improvement and margin expansion combined driving outperformance.' Ralph Lauren (RL) shares have plummeted 40% in 2015. Nevertheless, Daniel said it is a smart contrarian choice for investors looking for a turnaround story.
More from Video
Amid the Selling, Here's the Big Question Now
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
One Tweet Pulls the Rug Out From Under the Indexes
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
A Technical Look at the New Dow Jones Industrial Average
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
Conagra Brands Looks Tastier After Its Upgrade to Buy
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts
Breaking down an approach to the long side of this biotech stock.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.