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A Triple Play for Your Portfolio: SHW WGO FMX

Louis Navellier, editor of Blue Chip Growth and Emerging Growth, joined CNBC’s Squawk Box on Monday to offer up his triple play for your portfolio: Winnebago (NYSE:WGO), Sherwin-Williams (NYSE:SHW) and Fomento Economico Mexico (NYSE:FMX).

While these stocks might not sound related, Louis points out that all are great buys because of strong sales growth and earnings that are growing even faster than sales thanks to expanding margins. Those are two things that have been increasingly hard to come by on Wall Street in the last few quarters.

“We expect the market to get smart, we expect the leaders to break out,” Navellier said. “There’s been a lot of froth in this market, and it’s time to go to quality.”

Other highlights include:

  • Winnebago: Record order backlog, 3X what it was at this time last year and a history of big earnings surprises.
  • Sherwin-Williams: the purchase of Cemex, a large Mexican cement company, gives diversification and greater revenue potential from the housing rebound.
  • FMX: The average Mexican drinks 43 gallons of soda a year, the highest in the world. FMX is a big Coca-Cola (NYSE:KO) bottler benefiting from the growth of the middle class in Latin America.

Bigger-picture, Louis also warned that earnings will be sluggish in the next quarter or so but should get much better in the second half of 2013. And as he and I have discussed before, Louis expects the dollar to weaken across the latter part of this year.

Check out the full video for details.

Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

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