Billionaire Richard Chilton’s Long Term Stock Picks Include The Home Depot, Inc. (HD)

Chilton also liked manufacturer of semiconductor devices Micron Technology, Inc. (NYSE:MU), disclosing ownership of 6.1 million shares as of the beginning of April. Micron Technology, Inc. (NYSE:MU) actually turned a small profit in the fiscal quarter ending in May 2013 after three consecutive quarters of net losses. While it is still unprofitable on a trailing basis, this is at least an improvement. The sell-side is highly optimistic about the forward fiscal year (ending in August 2014), expecting nearly $1 in earnings per share for a forward earnings multiple of 14.

Chilton Investment Company has maintained a significant stake in Cabot Oil & Gas Corporation (NYSE:COG) for the past couple of years. Markets are depending on Cabot Oil & Gas Corporation (NYSE:COG) achieving high growth in its earnings over the next several years; even with analysts expecting increases in EPS next year the stock is valued at 27 times consensus forecasts for 2014. Of course Cabot, as an oil and gas company focused on onshore U.S. shale plays, does have high growth prospects with revenue up 37% in the first quarter of 2013 versus a year earlier and earnings more than doubling.

Still, investors should be reluctant to invest in Cabot for the time being as large future increases in earnings are already priced in. The semiconductor related companies should also be avoided. While home improvement retailers shouldn’t be ruled out as a way to play housing and construction activity, The Home Depot, Inc. (NYSE:HD) doesn’t seem cheap and certainly should be compared to its peers and to other stocks tied to those trends.

Disclosure: I own no shares of any stocks mentioned in this article.