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Stock picks by the pros
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January 9, 2002: 2:17 p.m. ET
Analysts see opportunity in clothing retailers and blue-chip stocks.
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NEW YORK (CNN/Money) - Software stocks led the way Wednesday as the Nasdaq posted a gain of about 2 percent and the Goldman Sachs Software index climbed more than 4 percent on guidance from Oracle.
The world's second-largest software firm said it believes the worst of the economic downturn has passed.
For those investors looking to enter the markets on the momentum of the software sector, an analyst and chief investment officer appeared on CNNfn to suggest some plays in software and some other sectors.
Dorothy Lakner, retail analyst with CIBC World Markets, sees opportunities in the retail sector after many companies exceeded lowered expectations.
"I think there were really expectations of the worst in general. For the specialty sector this holiday season and in general, I think, the results may be a little bit better than expected," she said.
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 DOROTHY LAKNER'S PICKS
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American Eagle Outfitters (AEOS)
Pacific Sunwear (PSUN)
Gymboree (GYMB)
Chico's FAS (CHS)
Talbots (TLB)
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"We've still remained selective on the sector, but we think that great brands that have managed their inventories and expenses well as Tiffany has and also have made - have good merchandise assortments that are well-targeted to their consumers [and] are good plays even for 2002," Lakner continued. "So [we like] companies like American Eagle in the teen sector. Pacific Sunwear is another one we like in that sector, and in the children's sector we like The Gymboree Corp. Older women's clothing we think will be a good sector in 2002, and we like Chico's and Talbots."
Shares of American Eagle Outfitters (AEOS: down $1.22 to $28.68, Research, Estimates) are in a 52-week range of $43.00 to $16.95.
Pacific Sunwear (PSUN: up $0.16 to $21.42, Research, Estimates) shares have been between $35.87 and $11.45 in the last year.
Shares of Gymboree (GYMB: up $0.45 to $11.98, Research, Estimates) are in a 52-week range of $17.12 to $4.00.
Chico's FAS (CHS: down $0.76 to $40.55, Research, Estimates) shares have been between $42.78 and $18.45 in the last year.
Shares of Talbots (TLB: down $0.88 to $37.12, Research, Estimates) are in a 52-week range of $54.49 to $22.02.
Subodh Kumar, chief investment officer also with CIBC World Markets, likes General Electric for a play in the manufacturing sector. "What I'm looking for is first, I think the consumer holds it. Secondly, I'm looking for capital spending that's driven by efficiency to come back," he said. "I think defense spending is going to be a long-term plus in the markets."
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SUBODH KUMAR'S PICKS
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General Electric (GE)
Intel (INTC)
Microsoft (MSFT)
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Kumar also likes Intel and Microsoft. "When we look at the utilization of networks theme, I look at a company like Intel and a company like Microsoft," he said. "I think that those companies have been changing their business models, if you will, and they've got real products, real earnings, and I think they'll lead the market as well."
Shares of General Electric (GE: down $0.10 to $38.85, Research, Estimates) are in a 52-week range of 53.55 to $28.50.
Intel (INTC: up $0.89 to $36.47, Research, Estimates) shares have been between $38.59 and $18.96 in the last year.
Microsoft (MSFT: up $0.12 to $69.50, Research, Estimates) shares are in a 52-week range of $76.15 to $47.50. 
* Disclaimer
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