WellPoint, Inc. (WLP), The Timken Company (TKR): Value Investor Karen Finerman’s Latest Stock Picks

Page 1 of 2

Readers may recognize value investor Karen Finerman from her frequent appearances on CNBC’s Fast Money. Outside of her television appearances, Finerman is the CEO and co-founder of Metropolitan Capital Advisors, a New York-based hedge fund established in 1992.

The 48-year old Finerman recently authored a book titled Finerman’s Rules: Secrets I’d Only Tell My Daughters About Business and Life. The new release offers insights on a variety of topics, including personal finance and advice for career-minded women. Although I do not meet the target female demographic, I consider the book a must-read for both male and female audiences.

With respect to her hedge fund, Finerman maintains a simple goal. The fund aims to outperform large-cap indices such as the S&P 500 using a value-oriented approach, all while incurring less risk.

Here are three stocks owned by Finerman that readers might consider:

WellPoint, Inc. (NYSE:WLP)

Health benefit company

Metropolitan Capital entered the New Year with a large position in WellPoint, Inc. (NYSE:WLP), and Finerman increased her stake even more during the first quarter.

Finerman’s good work has been confirmed by the healthy rally in the stock (no pun intended) that has taken place since April. Shares of WellPoint, Inc. (NYSE:WLP) have outperformed the S&P 500 with a 34% gain through June.

Despite the recent gains, I believe the health benefit company can run higher in the next 12 months. WellPoint, Inc. (NYSE:WLP) reported better than expected Q1 earnings on April 24, with EPS of $2.94 significantly above the consensus of $2.38. Management provided full-year earnings guidance of “at least $7.80” based on anticipated enrollment growth.

In my view, the Q1 earnings beat is the start of a long-term positive at WellPoint, Inc. (NYSE:WLP). New members are likely to join a WellPoint, Inc. (NYSE:WLP) health plan based on the expansion of Medicaid under President Obama’s Affordable Care Act. The company is also benefiting from a new CEO, Joseph Swedish.

On May 13, WellPoint, Inc. (NYSE:WLP) reiterated its full year guidance in a regulatory filing. Numerous Wall Street firms have upgraded the stock in recent weeks, which could lead other hedge funds to ride on Finerman’s coattails.

The company will release Q2 2013 earnings before the market open on July 24. I believe management’s guidance is likely conservative, and the stock could reach $90 before year-end.

Industrial machinery & equipment

As a value investor, Karen Finerman will often buy and hold stocks for the long-term. She continues to view The Timken Company (NYSE:TKR) positively, with a large ownership position as of the most recent SEC filing.

The Timken Company (NYSE:TKR) develops and sells products for friction management and mechanical power transmission, alloy steels, and steel components. The $6 billion company operates outside northeast Ohio with more than 20,000 employees in 30 countries and territories.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!