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Mid-Cap Stock Picks:  Coal, Packaging

Michael Santelli, senior director of Allegiant Funds, says mid-cap stocks offer the investor some excellent opportunities in this turbulent market climate.

His Allegiant Mid-Cap Value Fund is up an average of 12.08 percent per year over the last five years.

Recommendations:

His first pick is Arch Coal.

"It's pulled back nicely, giving people an opportunity to get in," he told CNBC. "They're going to re-price their legacy contracts at much higher coal prices, driving their earnings and cash flow over time."

Arch Coal is heavily invested in the Wyoming Powder River Basin region. The price of coal from that region has much more room to grow than the price of coal from Eastern mines.

Santelli also likes packaging manufacturer Pactiv.

"They've been hurt with raw material prices," he explained. "They buy a lot of plastic, which is a derivative of oil and natural gas, so raw material costs have pinched them."

He says the company has a plan to get that margin back through price increases.

Disclosures:

Disclosure information for Michael Santelli was not immediately available.

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