This Day On The Street
Continue to site
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

Stocking-Stuffer Stocks for the Holidays

Don Cleven, portfolio manager of the Touchstone Mid-Cap Value Fund (TCVAX), and Herbert Chen, portfolio manager of the Huntington Growth Fund (HGWIX), have different holiday stocking stuffer picks that range from below $25 up to $200, depending on the recipient.

American Eagle Outfitters (AEO)

Holiday Gift Equivalent: American Eagle military graphics shirts for men and V-neck T-shirts for women are priced at $19.50 each, slightly above the price of one share of American Eagle at $15.88.

Cleven's Take: "American Eagle occupies a sweet spot in teen retailing. The brand is stronger than others, like Aeropostale (ARO), but they're not quite as expensive as Abercrombie & Fitch (ANF). Normalized earnings could reach $1.40 a share, which assumes we're in a normal environment on the other side of the recession. If you have 15 times the price-to-earnings ratio, which is lower what they normally receive, you get $21 a share. That's 35% upside.

"They have a restructuring in place to tighten inventory controls and that will lower costs. That $1.40 target is on the other side of that issue. You also have a 2.8% dividend while you wait. You can't get a dividend from a sweater."

Cleven says American Eagle represents a 1.3% weighting in the Touchstone Mid-Cap Value Fund, which has assets of $44 million. The fund uses a classic value strategy and invests in stocks that tend to be more volatile and can be less liquid than large-cap stocks. The fund is still young, with an inception date of Sept. 30, 2009, but it touts one-year total returns of 19%, excluding sales charge.

Netflix (NFLX - Get Report)

Holiday Gift Equivalent: Netflix offers gift givers the ability to purchase a 12-month subscription for $179.88, enabling gift receivers to watch streaming content and receive two DVDs by mail at a time. That is comparable to the price of one share of Netflix ($193.42).

Chen's Take: Despite the 250% surge in Netflix shares this year, Herb Chen still thinks the stock has room to run higher. "While you will get a huge entertainment value from all the movies you can watch, you may leave some money off the table ... a very tough choice this holiday season," he says.

"If you look at the analysts out there, their target prices are lower than where the stock is today," Chen notes. "But I still like Netflix mainly because of the growth prospects. They're the leaders in leveraging technology and streaming video. They're so far ahead of anyone else. Management is phenomenal. A lot of people have an Xbox, a PlayStation 3 or a Wii console, giving them access to Netflix's streaming library on their TVs.

"When you talk about growth stories, Netflix is one of them. As a manager of a growth fund, I have to look at the market environment. And I think we're just getting started with streaming video. This will eventually be mainstream. This is how people will be watching television and movies. We're just getting started."

The Huntington Growth Fund, with more than $130 million in assets, counts Netflix as a top-10 holding alongside Apple, Caterpillar (CAT) and (CRM).

The fund, which is devoted largely to technology, energy and industrials, targets growth in large-cap stocks over the long term. The fund has lagged the total return of the S&P 500 in 2010 and 2009, while it matched the index's performance in 2008. In 2007, the fund handily beat the S&P 500.

-- Written by Robert Holmes in Boston.

>To see these stocks in action, visit the Stocking-Stuffer Stocks portfolio on Stockpickr.

>To contact the writer of this article, click here: Robert Holmes.

>To follow Robert Holmes on Twitter, go to

>To submit a news tip, send an email to:
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
DIS $103.82 -0.52%
F $13.43 -1.40%
MAT $30.81 -1.70%
NFLX $91.54 -1.69%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs