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Portfolio Manager Offers Buying Tips: Focus On What You Own

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Portfolio Manager Offers Buying Tips: Focus On What You Own

Investors looking to buy stocks at current levels may want to consider taking a closer look at stocks they already hold and identify undervalued names, Gilman Hill Asset Management CEO and Portfolio Manager Jenny Harrington said on CNBC's "Halftime Report."

Harrington Eyes Stocks With 'Rock Bottom' Valuations

Harrington said she is taking a look at undervalued and attractive names she already owns and might finance new purchases by selling other stocks that "haven't performed and won't."

A stock shopping list should include a selection of "old favorites," she said. 

Some of the names Harrington is considering include pharma companies AbbVie Inc (NYSE: ABBV) and Pfizer Inc. (NYSE: PFE), IBM (NYSE: IBM), AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ).

These are all companies with an established track record of dividend growth that are now trading at "rock bottom" valuations, Harrington said. 

UPS, Cisco, 3M 'Compelling'

Despite a focus on existing holdings, investors may still want to look outside of their current portfolio for trading ideas, Harrington said. 

Some of the stocks popping up on watchlists are those that Harrington said she has "never seen before," such as United Parcel Service, Inc. (NYSE: UPS), Cisco Systems, Inc. (NASDAQ: CSCO) and 3M Co (NYSE: MMM).

These stocks are "really compelling," but not yet deserving of inclusion in any "shopping list," she said.

Farr Says Fiscal Policy Could Cause Inflation

The federal government is introducing more than $2 trillion to the economy through stimulus measures, and countless more from the Federal Reserve will create some "sort of inflation at some point down the road," said Michael Farr of Farr, Miller & Washington.

A good dividend stock isn't good by default due to offering an attractive yield, and investors should focus on those with attractive balance sheets and a solid business, he said. 

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