Tags: Alger | Chung | Google | Gilead

Alger Management's Chung Recommends Google, Gilead

By    |   Tuesday, 10 Jun 2014 11:11 AM

Stocks are set to rise during the next two years, says Daniel Chung, CEO of Fred Alger Management. And he recommends Google and Gilead Sciences in particular.

"As growth stocks, they have sold off significantly from their peaks, and I think they're offering excellent growth and actually value for investors right now," he told CNBC.

Google early Wednesday was at $565.87, while Gilead was at $79.74.

Editor's Note: 18.79% Annual Returns ... for Life?

As for Google, "this is a highly innovative company," Chung said. He listed its driverless cars as an example.

The stock also appeals to him because its forward price-earnings (P-E) ratio stands at 15, while revenue growth for its core business is running at 20 percent.

When it comes to Gilead, it's not an expensive stock, Chung said. Gilead has a forward P-E ratio of 10.7, according to Yahoo. And Gilead's success isn't dependent on the economy, he said.

Morningstar analysts think highly of the companies too, though Rick Summer puts Google's fair value at $520.

"With a dominant Internet search product as its foundation, Google has built an impressive portfolio that individuals use frequently, beyond search," he writes on Morningstar.com.

Morningstar's Karen Andersen estimates Gilead's fair value at $87. "[Its] focus on infectious disease has paid off in spades," she writes. "With a small salesforce, inexpensive manufacturing, and selective research and development, it generates stellar profit margins."

Editor's Note: 18.79% Annual Returns ... for Life?

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Stocks are set to rise during the next two years, says Daniel Chung, CEO of Fred Alger Management. And he recommends Google and Gilead Sciences in particular.
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2014-11-10
Tuesday, 10 Jun 2014 11:11 AM
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