Power Play: Investing in a stock-picker's market

Traders work on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters

Stocks have been see-sawing this year, up one day and down the next, and this may be good news for active managers.

Ed Perks, chief investment officer at Franklin Equity Group, tells CNBC's "Power Lunch" on Thursday, "a range bound market is ultimately a good thing."

He is looking for companies that are out of favor, such as utilities. "Whenever there's such a mass exodus from a sector, that's an opportunity," Perks said.

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Steve Auth, equities CIO at Federated Investors has a year-end target of 2350 for the and is betting on industrials in a stock-picker's market.

"Generally we like those companies poised to benefit from global economic acceleration and cheaper input costs due to the strong dollar and weak oil. Two names we own here are General Dynamics and Ingersoll- Rand," Auth said.

General Dynamics was down during trading, while Ingersoll-Rand was up about two percent.