Silver Wheaton Corp. (USA) (NYSE:SLW) and PNC Financial Services Group Inc (NYSE:PNC) seem to be favorites of analysts because of various reasons. These companies have not been performing very well on the market recently and analysts feel that they might give good returns on a longer term.
Shane Siederman of Bay Ridge Financial Group and Mark Luschini, Janney Capital Management, were on CNBC yesterday and they discussed about their stock picks and also explained why they chose those particular stocks.
Siederman was actually backing inflation factor and he thinks that it would increase the prices of silver too. So he said he would go with Silver Wheaton Corp. (USA) (NYSE:SLW) with the prices of almost every commodity from food to oil going up frequently. He thinks that the stock is well managed and the prices are steady even in an inflated market and he said that Silver Wheaton Corp. (USA) (NYSE:SLW) looks good valuation wise.
“What I’m looking for is inflation right now. You’re seeing it spin out of control a little bit. You have food prices up big, you got oil rising and I like Silver Wheaton, SLW” Siederman stated.
Luschini’s favorite stocks include PNC Financial Services Group Inc (NYSE:PNC) and he said that the P/E ratio of almost 13 along with a large franchise in Mid-Atlantic coast and Florida makes the stock attractive. He also said that domestic economic relief is underway which means a better loan activity and better housing market. So this would actually add to the margins of PNC.
The stock of PNC Financial Services Group Inc (NYSE:PNC) has just been down by 1% yesterday and has been steady for most part of the year. Luschini said that he would be more than happy to own the stock and if it went down when the markets deteriorate, he would be buying more of the stock.
So Siederman has an inflation angle to pick Silver Wheaton Corp. (USA) (NYSE:SLW) whereas Luschini feels that the domestic economic recovery would help PNC Financial Services Group Inc (NYSE:PNC).
Disclosure: None
