Energy and industrials have been the top performing sectors this quarter, but Craig Callahan, founder and president of ICON Advisers, said he sees further upside for both groups going forward.
“We like the large-cap integrated oil and gas companies,” Callahan told CNBC.
“We’ve been on a tremendous rally over the last two years, and the leadership has been in anything that’s economically sensitive or cyclical—and energy and industrials are a part of that.”
Callahan’s top energy picks are ExxonMobil and ConocoPhillips .
In addition, his best industrial plays include Caterpillar and CSX .
“We like the railroads, industrial machinery, and farm equipments—they are all good bargains still,” he said of the industrials.
“They aren’t priced anywhere near market peaks yet.”
Scorecard—What He Said:
- Callahan's Previous Appearance on CNBC (Dec. 7, 2010)
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- Greenberg: Comparing Today’s Market to 1999
CNBC Data Pages:
No immediate information was available for Callahan or his firm.