The U.S. economy is in a recession, says David Khani, FBR Capital Markets director of research, but the market has pretty much played out its worry about it.
"We're probably about two-thirds through the panic," he said in an interview on CNBC's "Squawk Box."
In the meantime, investors still have opportunities, Khani suggested.
Millenium Pharmaceutical : "It's market share is going to double or triple in the cancer space," he said.
Sallie Mae : "Education is a mandate and we think there is a bailout coming to open up the gridlock for student lending."
He also indicated he likes Arch Coal , URS , and Sykes .
Disclosure: Khani and his firm don't have positions in the stocks he touted, but his firm odes
act as a market maker in some of the securities.