The S&P 500 moved above its 200-day moving average on Monday. So is this a sign that stocks are breaking out of their recent trading range?
Craig Hodges, co-portfolio manager at The Hodges Fund & Hodges Small Cap Fund, and Dan Genter, president, chief investment officer and chief executive of RNC Genter Capital Management, shared their best plays.
“The major problem is confidence in investors," Hodges told CNBC. "That’s going to take time and will be corrected when we start seeing economic data get better."
Hodges said he sees a disconnect between markets and companies.
“We’re finding companies all over the place that are saying their second half looks great, there’s great growth and they’re as lean as they’ve been in years,” he said.
The 'Only Thing We're Missing':
In the meantime, Genter said markets have upside potential in the next 9 to 12 months.
“We’ve seen good earnings growth…and we actually saw good guidance that people wanted to see,” he said. “So the only thing we’re missing is investor confidence and now what we’re seeing is that people are coming to grips with the fact that this is going to be a slow first-year type of recovery.”
Recommendations:
Genter Likes:
Oracle
Intel
Cisco Systems
Hodges Likes:
Belo
Kansas City Southern
Omnivision Tech.
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Scorecard—What They Said:
- Genter's Previous CNBC Appearance (Jul. 22, 2010)
- Hodges' Previous CNBC Appearance (Jun. 4, 2010)
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More Market Views—Across the Board:
- Upgrades, Earnings, Etc.: What's Moving These Stocks
- Abby Joseph Cohen's Stock Outlook
- Find New Opportunities Here: Market Strategists
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CNBC Data Pages:
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CNBC Slideshows:
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Disclosures:
No immediate information was available for Genter or Hodges.
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