Stocks that have largely underperformed are expected to be this year's big gainers, said Alan Lancz, president of asset management firm Alan B. Lancz & Associates, and Howard Ward, portfolio manager of Gamco Growth Fund.
“The S&P 500 is up 22 percent since late August [of 2010], so we’re due for a correction," Ward told CNBC.
"And we’re going to have plenty of excuses for that, whether it’s municipal bond funding, European debt crisis, disappointing jobs reports, earnings or earnings guidance,” he added.
Ward advised investors to “take their foot off the accelerator” and to avoid the big winners from 2010.
“Try to find stocks that haven’t had a big move—buy low and sell high,” he suggested. (Scroll down for his full picks.)
In the meantime, Lancz said he has been taking profits in some of the "high-flyers," such as commodities.
“Fortunately, this market has been generous in presenting opportunities in companies and sectors that have underperformed,” he explained. “And high-quality companies that trade at lows that have really presented some bargains for us and done well.”
Lancz Likes:
Symantec
Merck
Best Buy
Ward Likes:
General Electric*
Southwestern Energy
Ultra Petroleum
______________________________
Scorecard—What They Said:
- Lancz's Previous Appearance on CNBC (Dec. 23, 2010)
- Ward's Previous Appearance on CNBC (Jan. 4, 2011)
______________________________
More Market Views:
- Markets Will Grind Higher in First Half of 2011: Strategist
- 6 Value Plays For Investors: Strategists
- US Markets—The 'Place to Be' This Year: Stock Pickers
______________________________
CNBC Data Pages:
______________________________
CNBC Slideshows—FYI:
______________________________
______________________________
Disclosures:
Lancz, clients and family members own shares of SYMC, MRK and BBY.
No immediate information was available for Ward or his firm.
*General Electric is the corporate parent of CNBC.
______________________________
