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Power Play: Finding opportunities in a volatile market

Traders on the floor of the New York Stock Exchange.
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Traders on the floor of the New York Stock Exchange.

Stocks may be rallying Monday, but they are down more than four-percent since July 1st. Two money managers tell CNBC's "Power Lunch" the recent market sell-off has created some opportunities for investors.

Chad Morganlander, portfolio manager at Stifel, favors large-cap U.S. companies. Investors should "move up the quality spectrum," Morganlander said.

He likes Dr. Pepper Snapple, PepsiCo and Anheuser-Busch Inbev.

Read MoreDow adds 250 points; oil gains boost energy more than 2%

Mark Travis, president and portfolio manager at Intrepid Capital Funds, favors two small-cap names, American Science and Engineering and Patterson-UTI Energy.

American Science manufactures scanning technology for security purposes and Travis likes the company's very clean balance sheet.

With Patterson-UTI, Travis believes the land-based drilling rig operator provides critical work for fracking. "This business is definitely a survivor. I tend to think normalized oil prices won't be $45/barrel. $65 is the norm in the next three years," Travis said.

Dr. Pepper Snapple, PepsiCo, Anheuser-Busch Inbev, American Science and Engineering and Patterson-UTI are all higher during trading.