Power Play: 3 stocks with potential for outsized returns

Facebook on cell phone
Joe Klamar | AFP | Getty Images
Facebook on cell phone

The Dow turns positive for the year, surging more than 9 percent since the lows of February 11.

Despite this rally, Michael Cuggino, president and portfolio manager of Permanent Portfolio Funds is still finding opportunities, especially after the Fed slashed the number of expected rates hikes this year from four down to two.

"While likely, there are no guarantees we'll even get 2 rate hikes this year, especially as we get closer to the fall elections," Cuggino said.

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He believes this will encourage investors to take more risks. "We would be looking for stocks that have outsized return potential given the growth prospects and the broader sell-off over the [last] couple of months," Cuggino said.

His favorite names include Facebook in tech, Ryder System in transports and State Street in financials.

Ryder and State Street are higher during trading, while Facebook is lower.