Saut said he favors the IT sector as companies gear up for a corporate refresh cycle. He said firms such as Microsoft are poised to benefit.
“You’ll get a whole upgrade cycle of not only software but hardware as well,” he said.
In addition, Saut also likes Wal-Mart .
In the meantime, Riley noted that although the markets in March produced a negative mindset about the second quarter, 83 percent of companies that have reported earnings so far have beaten estimates.
“So this is setting up for the rest of the year,” he said. “This economy is going to be growing slowly, but companies are still going to produce a very good response.”
Riley agrees with Saut about opportunity in the technology sector.
“I’ve never seen growth so cheaply priced in my life,” he said. “I don’t understand why people don’t want these stocks.”
Riley’s tech sector picks include IBM , Apple and Microsoft.
Scorecard—What They Said:
- Riley's Previous CNBC Appearance (Jul. 13, 2010)
- Saut's Previous CNBC Appearance (Jul. 19, 2010)
Market Views Across the Board:
CNBC Data Pages:
No immediate information was available for Riley or Saut.