Stock Picks: Dirty Coal and the Multinationals

Stocks rebounded this afternoon after a morning slide, and CNBC asked market experts how investors can capitalize on this momentum.

Power Plays

"We think the cleaner plays have been largely recognized in terms of their valuation, so we actually like the dirty coal names: NRG , Dynegy , Allegheny Energy and Edison International ."

- Paul Fremont, Jefferies & Company

Betting on Multinationals

“There are American companies that can prosper in this sluggish, flat economic environment in the United States … Even more intriguing than the American multinationals are the foreign multinationals.  They are more leveraged to the emerging markets, and are less dependent on the North American markets.”

- Jay Bowen, Bowen, Hanes & Co. President

Bowen recommends: Caterpillar , DuPont , Parker Hannifin , ABB and BASF .

International Telecom Plays

“In general, the U.S. market is not particularly attractively valued right now.  My colleague in Europe … would say the best opportunities around the world are probably in international stocks, like Vodafone , where you can get better growth at more attractive valuations in the wireless markets.”

- Craig Moffett, Sanford C. Bernstein Senior Telecom Analyst

© 2008 CNBC.com