Wednesday on CNBC's "Squawk Box," two top market strategists shared their top stock picks and explained what's working in the markets right now.
Although David Katz, CIO at Matrix Asset Advisors, expects a "market slowdown and bouts of volatility" this fall, he said that "when all is said and done, the market ends up higher than it is today."
In this market, one of his top picks is Devon Energy. "We think the stock's assets are worth $90-$100 per share. We think management is very focused on realizing value," he said. "The stock is dirt cheap and improving fundamentals."
Katz also likes JP Morgan, despite "being in the regulators cross hairs." He said the company's business is "very powerful" and he expects 30-50 percent upside on the stock, which he said should eventually trade at 1.3 to 1.5 times book value.
He also picks Qualcomm as a top buy. "If you think smart phones are going to continue to roll out globally, and we absolutely think that they are, Qualcomm is the winner. ... At 14.5 times earnings, with a good yield and the company buying back stock, you've got a lot of upside, limited downside risk," he said.
Tim Cunningham, fund manager at Thornburg, is focused on two European stocks with high potential.
First, he suggests investors look at Wirecard, a German online payment processor. He likes it because in Europe, where online transactions tend to be relatively complicated, "most online retailers want to outsource it to an expert like Wirecard."
Cunningham also picks what he calls "the Charles Schwab of the U.K.," Hargreaves Lansdown. As the largest and most dominant discount brokerage firm in Britain, he said, "Hargreaves Lansdown stands to benefit for years" from the trend of creating a customized retirement portfolio of stocks.
Disclosure: David Katz and his firm, Matrix Asset Advisors, own shares of Devon Energy, JP Morgan and Qualcomm. Tim Cunningham's firm owns shares of Wirecard and Hargreaves Lansdown.
— By CNBC's Paul Toscano. Follow him on Twitter@ToscanoPaul
