Union Pacific (UNP), Smart & Final (SFS) and Party City (PRTY) are three stocks investors should consider adding to their portfolios, according to Marshall Kaplan, Managing Director at Morgan Stanley Wealth Management. Kaplan said Union Pacific shares have retreated because investors are focusing on short-term issues with the rail company, such as declines in demand and earnings. But Kaplan noted that going forward, it’s a different picture for Union Pacific. On Smart & Final, Kaplan said the company has had lethargic unit growth over the past several years, but that is about to change. He noted the company has raised some funds with a recent IPO, and now Kaplan expects 10% unit growth over the next few years, along with 4% same-store sales growth. Kaplan also is a fan of Party City, and said that party supplies are a $15-billion market. He noted that Halloween is a growth vehicle for the company. He expects mid to high single digit revenue growth over time, and looks for 30% store growth over the next couple of years.
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