This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple, Little Understood, Is Best-Run Company

Stocks in this article: AAPL TEVA ATVI

NEW YORK ( TheStreet) -- Erick Maronak, manager of the Victory Large Cap Growth Fund (VFGAX), says Apple (AAPL - Get Report) is the best-run company in the U.S., helping to make it the most attractive stock investment.

The $80 million mutual fund, which garners three of five stars from Morningstar, has returned more than 36% over the past year. The fund has risen an average of 2% annually during the past five years, better than 72% of its Morningstar-tracked peers.

Welcome to TheStreet.com's Fund Manager Five Spot, where America's top mutual fund managers give their stock picks and views of the stock market in five fast questions.

Are you bullish or bearish?

Maronak: We are bulls on the stock market but even more bullish on high-quality growth stocks. The current focus on sovereign debt risk, uncertainty regarding regulatory changes and policy decisions is obscuring evidence of a solid, but gradual, recovery. U.S. industrial production increased at an annualized rate of 10% over the last seven months, and the global picture is not much different.

With more than 80% of companies having reported earnings, results have been strong with greater than 50% surprising on the upside. Not surprisingly and consistent with the prior two quarters, companies that exceeded revenue expectations in addition to beating EPS estimates performed better than those that simply had positive earnings surprises. Cost-cutting can only go so far. Therefore, companies that can show true demand in terms of revenue growth are awarded a premium. We believe the same can be said of the overall market. Following last year's broad bounce off the March lows, an encore performance in 2010 will be much more challenging. The list of winners will naturally shorten, but those companies that make the list should enjoy relative premiums in terms of stock performance. Our view is that the investing environment has shifted from rewarding investors for simply staying in the market to being in the right stocks.

What is your top pick?

Maronak: Choosing one is difficult, so I'll provide two. Apple and Teva Pharmaceuticals (TEVA - Get Report) are top picks due to their dominant industry positions, strong financials, capable management teams and the ability to provide 17% to 20% growth against very reasonable valuations.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs