NEW YORK (CNN/Money) -
A positive report from a Dow component lifted stocks to their second consecutive day of gains Friday.
General Electric said it earned $4.1 billion, or 41 cents a share, in the third quarter, up 25 percent from net income of $3.3 billion, or 33 cents a share, a year earlier. That was in line with the consensus forecast of analysts surveyed by earnings tracker First Call. The year-earlier period included a $400 million charge for Sept. 11-related reinsurance losses.
The company also said it expects to meet its previously stated full-year earnings target of $1.65 a share, which matches the First Call forecast and is up from the $1.49 a share it earned before special items in the year-earlier period.
For those looking to enter the markets on Friday's rally, two stock strategists appeared on CNNfn to suggest some stocks in the real estate, medical, and retail sectors.
Richard Imperiale, fund manager of the Forward Funds, believes real estate investment trusts, or REITs, can add balance to a portfolio. His first selection is SL Green.
"SL Green focuses on what we call 'B' properties, so the rent structure is a little bit lower than what we would call 'A' properties," Imperiale said. "And they tend to focus on buildings that are on the avenues and they're only in midtown Manhattan, so they have a very effective and focused strategy."
| Richard Imperiale's picks
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| Capital Automotive REIT (CARS)
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AMB Properties is Imperiale's second pick. "They primarily focus on air freight, so they've actually benefited, to a small degree, from what's going on out in California," he observed. "But I think long run, their business strategy, which is to match their major hubs with the logistics of just-in-time delivery, seems to be working very well."
Capital Automotive REIT makes the list as Imperiale's final selection. "It invests in properties used by full-service automobile dealerships and other automobile-related businesses," he said. "The company usually buys the property of existing multi-franchised dealerships and then leases it back to the operator on a triple-net basis for 10-to-20 years. The properties include more than 400 automobile franchises representing almost 40 major brands of automobiles, including BMW, GMC, Jaguar, Jeep, Lexus, and Volkswagen."
Funds under Imperiale's management own a stake in the companies mentioned.
Shares of SL Green (SLG: up $0.83 to $28.93, Research, Estimates) are in a 52-week range of $36.70 to $27.24.
AMB Properties (AMB: up $0.63 to $26.54, Research, Estimates) have been between $31.10 and $23.08 in the last year.
Capital Automotive REIT (CARS: up $0.24 to $24.10, Research, Estimates) shares are in a 52-week range of $25.17 to $17.60.
Steve Yeary, market strategist with New Millennium Advisors, sees Johnson & Johnson as a stable play in a volatile market.
| Steve Yeary's picks
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"We think their general business of Band-Aids and bandages and all of their other business lines are doing just fine," Yeary said. "Their earnings are growing and we see that this is one of the stocks that we recommend owning during this crazy time in the marketplace."
Yeary's other selections are retailers Home Depot and Wal-Mart. "Both of them are high-profile stocks, they have great brand images and they've sold off sharply and so this is a valuation call," he said. "It's a time to get back into these franchise stocks and as the market recovers, these stocks will do well."
Yeary does not own a stake in any of the companies mentioned.
Shares of Johnson & Johnson (JNJ: down $0.21 to $56.59, Research, Estimates) are in a 52-week range of $65.89 to $41.40.
Home Depot (HD: up $1.46 to $26.06, Research, Estimates) shares have been between $52.60 and $23.18.
Wal-Mart (WMT: up $1.82 to $53.46, Research, Estimates) shares are in a 52-week range of $63.94 to $43.72.
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