Raytheon makes the list, as does Tyson Foods and St. Jude Medical . But there are also Ironwood Pharmaceuticals and Equinix, a website hosting company.
"Data traffic is growing no matter what the economy does," Kestenbaum said of Equinix . "As data traffic goes up, demand for services keep increasing." The company is even hiring more salespeople, he said. "You will see incredible growth in this operation," said Kestenbaum, who has a "buy" rating on the stock.
Another pick is Advance Auto Parts . With about 150 million cars on the road and people holding on to their cars for 10 years or more, "both trends are positive for the stock," he said.
Some of Morgan Josephs' picks last year did spectacularly, particularly American Water Works , up 33 percent from Sept. 15, 2010, to today, and Primoris Services , up 116 percent in the same period.
Others, however, didn't do so well. Harris Corp. was down 15 percent over the same period, while Navistar was off 7 percent.
Rounding out last year's list were Stage Stores and CBL Associates Properties .
CNBC Data Pages:
David Kestenbaum does not own shares of any of the companies but Morgan Joseph intends to seek compensation for investment banking services.