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)

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 Salesforce.com ( 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.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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