Stock Picker: Dollar Stores are Thriving

Richard Sparks of Schaeffer's Investment Research admits the current market environment is a tough one, but he still has some suggestions about where a stock investor's money should go.

"It's a very difficult market, there's a lot of volatility, there's a lot of downside risk," he told CNBC — but added, "It doesn't seem like there is enough pessimism here to put in a true market bottom."

"We're seeing a lot of optimism, a lot of  'It's an attractive market here,' a lot of 'The market is at a low P/E.'"

So where is he steering investment dollars?

Recommendations:

"With the economy slowing, the for-profit education-services companies, like Strayer Education or Apollo Group, their profits continue to rise, and the stock charts are reflecting that," he said. 

Sparks also likes shares of the so-called "dollar stores:"  Dollar Tree, Family Dollar Stores, and 99 Cents Only Stores.

Disclosures:

Disclosure information for Richard Sparks was not immediately available.

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