CNBC"Street Signs" September 11, 2006
Nick Calamos Discusses Growth Stock Opportunities, Recent Developments at HP
In an appearance on CNBC's "Street Signs," Nick P. Calamos, CFA, senior executive vice president and co-chief investment officer of Calamos Asset Management, expressed an optimistic view on the prospects for large- and mid-cap growth stocks. He also discussed opportunities in the technology sector and shared his perspective on Hewlett-Packard (HP).
Calamos said although growth stocks have been out of favor for some time, his outlook on growth remains positive, particularly for big- and mid-cap growth stocks. He noted that relative to cyclicals, valuations in growth stocks appear more attractive than they have been in 15 years.
"Earnings have grown rapidly for the last three years and prices have not." Over time, he said, "I think what we'll see is a normal catch-up, with prices catching up with earnings."
Within the technology sector, Calamos said the software sector was one area that could be well positioned in future months.
Regarding recent events at HP, Calamos said, "It's clearly a distraction for the board." But "from a stock valuation perspective," he added, "I don't think it's going to have much impact on the stock at all." Calamos cited HP's strong top-line growth and earnings over the past 12 to 18 months among the positives for the stock.
For more on Nick Calamos' view on the market and long-term investment opportunities, please visit our commentary section.