Capital Goods/Industrials: Aerospace & Defense Electronics - 2010 2nd
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Capital Goods/Industrials: Aerospace & Defense Electronics - 2010 2nd

Repeating in second place is Douglas Harned of Sanford C. Bernstein & Co.

Douglas Harned Sanford C. Bernstein & Co.

Repeating in second place is Douglas Harned of Sanford C. Bernstein & Co. “His insights are often months ahead of his peers’,” insists one loyalist. Harned upgraded Northrop Grumman Corp. from neutral to outperform in February 2009, at $42.49, on the belief that the Los Angeles–based manufacturer of surveillance and combat aircraft, and one of the world’s largest defense contractors, would benefit from any increase in defense spending. The stock soared above $68 per share in late April 2010 before slipping back to $54.12 by the end of August, for a gain of 27.4 percent since the upgrade. During the same period the sector advanced 22.5 percent.


In a year when macro concerns overshadowed stock picking, these top analysts came to the aid of investors at sea in the market turbulence.
After two years in the runner-up position, Chip Dillon of Credit Suisse rises to No. 3. “He is able to understand more-esoteric issues specific to the space,” touts one client. Dillon initiated coverage of Pactiv Corp., the maker of Hefty brand trash and sandwich bags and a producer of food-service and food-packaging products, in March with an outperform rating, making the case that the Lake Forest, Illinois–based company was undervalued on the basis of earnings and cash flow.
Citi’s P.J. Juvekar, 43, finishes in first place for a second consecutive year. “The analyst makes timely calls, provides excellent written research and knows the industry better than his peers,” insists one portfolio manager. Juvekar upgraded PPG Industries to buy in January, at $59.97, telling clients that the Pittsburgh-­based producer of coatings for industrial, architectural and auto markets would benefit from increased auto production, as inventories had been depleted in 2009 because of the Car Allowance Rebate System, better known as the cash-for-­clunkers program. Juvekar also believed the company would reap benefits from rising industrial production, to which PPG’s earnings are highly correlated.
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