Shares of Gentex popped almost 8% last week after the rearview mirror-maker beat Wall Street estimates on the top and bottom lines. David Bechtel, portfolio manager at Barrrow Street Capital, said investors need not look back because there will be higher share prices further on up the road. “The consumer led recovery is great for housing and auto stocks like Gentex,” said Bechtel. “They have a hammerlock on the rearview mirror market and car sales have been ramping up.” The Zeeland, MI-based auto-supplier reported earnings of 30 cents per diluted share, topping analysts’ projections by a penny. Gentex, up 7% year-to-date, saw its revenue jump 12% to $423.8 million from last year and was above Wall Street’s forecasts of $417 million. For 2016, Gentex sees revenue between $1.68 billion and $1.72 billion. Analysts are modeling revenue of $1.69 billion for the full year. Reynolds American is another one of Bechtel’s favorite stocks. The cigarette-seller’s shares are up 13% year. Reynolds reports second quarter earnings on Tuesday before the opening bell. Wall Street analyst consensus is for the company to earn 61 cents per share on revenue of $3.26 billion. “Reynolds is an amazing bargain with 20% operating income growth compounded annually for the last three years, plus its selling at 14% cash flow yield with a 3.2% dividend yield kicker,” said Bechtel. Whole Foods shares have been flat thus far in 2016, nevertheless, Bechtel is bullish that the company will see a second half surge. Whole Foods reports second quarter earnings on Tuesday after the close. Wall Street analyst consensus is for the company to earn 37 cents per share on revenue of $3.73 billion. “20% of Whole Foods’ sales come from prepared foods and its stores are increasingly a place to linger,” said Bechtel. “It’s also becoming more accessible through its 365 by Whole Foods Market stores.” Finally, Bechtel is a fan of Brown Forman , which has seen its shares drop 3% thus far in 2016. Brown-Forman is the maker of Jack Daniels and he said the iconic whiskey brand is “spearheading international growth with 50% of sales and growing coming from overseas”.
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