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.
