The market is transitioning to larger and less-levered companies, said Dan Veru, executive vice president and co-CIO of Palisade Capital Management.
He shared his views and top stock selections within the Russell 2000.
“We are optimistic on the individual stocks, but we are more neutral about the markets, given the magnitude of the move off the March lows,” Veru told CNBC.
“We think that you can make a lot of money on individual stocks.”
Individual stock selection will outperform the market, said Veru. He likes the transportationsector, especially the railroads. (For Veru's take on free cash flow, watch the full interview.)
Veru’s Stock Picks:
Genesee & Wyoming Railroad
- Watch Veru's Latest Appearance on CNBC (Sept. 2, 2009)
More Market Analysis:
- Art Cashin: Rally into 2010 Likely if S&P Breaks Key Level
- 16 Biggest Cash Positions of the S&P
- Buy 'Riskiest' Assets—Markets Will Rise: Strategist
CNBC Data Pages:
CNBC's Companies in the News:
Bank of America
BofA Raises $19.3 Billion in Share Sale
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GWR and LNCR are owned in managed accounts of Palisade Capital.