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In a flat market, here's where experts see opportunity

The market may be trading in a narrow range, but there is opportunity to make higher returns if investors know where to look, two experts told CNBC on Wednesday.

Narrow trading ranges and light volume have been the theme this summer, with the S&P 500 not moving more than 1 percent in either direction in the last 32 sessions.

"In this type of market, it will give you opportunities all the time," Hodges Capital Management CEO Craig Hodges said in an interview with CNBC's "Power Lunch." His firm's Hodges Fund is up 26 percent year to date.

"When you can buy great companies on sale, that's what we try to do," he said.

For example, non-energy stocks that are affected by energy prices can be "cheap." Texas banks have been "clobbered" and hotel company La Quinta saw its stock fall because of its exposure to the Lone Star State, Hodges said.

People walking in front of the New York Stock Exchange
Scott Eells | Bloomberg | Getty Images
People walking in front of the New York Stock Exchange

When it comes to his favorite stock ideas, he likes J.C. Penney, WisdomTree Investments, U.S. Concrete and EnLink Midstream.

Overall, Hodges sees the best value and growth opportunities in many of the cyclical areas, such as financials, consumer discretionary, technology and industrials.

Margie Patel, senior portfolio manager at Wells Capital Management, told "Power Lunch" that while the market has been flat, there have been sectors that have made some good moves. There has also been sector rotation, she added.

"The way to make money is simply to be on the right side of those sectors. Be in those sectors that have good news, that have some growth," Patel said.

She specifically likes technology, the tools and devices part of the health-care sector and consumers.

— CNBC's Robert Humm and Hailey Lee contributed to this report.

Disclosures: Hodges personally owns all of these stocks directly or indirectly though the Hodges mutual funds. The firm owns all of these stocks directly or indirectly though our mutual funds.