Don't punt on your CBS (CBS - Get Report) shares just because professional football ratings are down this season. The media giant's digital initiatives and steady diet of share buybacks will help the stock over the long term, said Erin Gibbs, portfolio manager at S&P Investment Advisory Services.
"CBS is seeing increasing revenues, margins and earnings. The Wall Street consensus estimate is for long-term earnings-per-share growth of 19%," said Gibbs. "Meanwhile, the stock is trading at 13 times its forward earnings, well below its three-year average, as well as that of the sector."
Shares of CBS are up 18% thus far in 2016.
Gibbs is also bullish on Constellation Brands (STZ - Get Report) , up 17% year to date, saying its recent acquisitions are supporting growth in both the beer and wine segments. The stock is trading at 23 times its forward earnings, higher than the sector's average of 20, but Constellation has significantly higher growth.
Monsanto (MON) , up 3% year to date, is another one of Gibbs' top picks. Bayer (BAYRY) offered $128 per share to acquire Monsanto last month. There are many regulatory hurdles and it is expected that the companies will have to shed some businesses for approval. But the deal is expected to be approved and contribute to higher margins.
"Either you make money from the Bayer merger if it gets completed or you are looking at 9% growth and the leader in GMO technology. So it's a win/win situation," said Gibbs.
Finally, Gibbs is a fan of health care provider Aetna (AET) , up 3% year to date. The stock has taken a beating now that it looks unlikely that the Humana (HUM - Get Report) deal will be approved. And Aetna would owe Humana a $1 billion breakup fee due to an antitrust termination. Plus, every time health care is brought up in the election, health care stocks take another beating.
But in spite of the merger rejection and headlines, Aetna looks extremely well valued, according to Gibbs.
"We don't think the deal is going to get done but the headline risk is creating a cheap stock in the meantime," said Gibbs.