NEW YORK (CNN/Money) -
Though the market's volatility over the past couple of years has sent a large number of investors to the sidelines, two money managers appeared on CNNfn to recommend some stable stocks with good earnings visibility.
Kevin Divney, portfolio manager with Putnam Investments, sees Office Depot as a solid holding.
"It looks attractive to us on a valuation basis," Divney said. "Operating efficiency is something that management has done well, plus Office Depot has good earnings visibility."
| Kevin Divney's picks
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Divney's second selection is discount retailer TJX Cos. "Again, it looks attractive to us on a valuation basis," he observed. "It has a good franchise position in its distribution outlets and is gaining share against competitors in the discount apparel industry. We find the business model very compelling. It gets good leverage in buying inventory and distributing it efficiently through its sales channels."
Microsoft rounds out Divney's picks. "It is the dominant franchise player in software and has good earnings visibility and good earnings quality right now," he said.
Funds under Divney's management own stakes in the companies mentioned.
Shares of Office Depot (ODP: up $0.75 to $16.75, Research, Estimates) are in a 52-week range of $21.96 to $10.60.
TJX (TJX: up $0.20 to $19.70, Research, Estimates) shares have been between $22.45 and $15.30 in the last year.
Shares of Microsoft (MSFT: up $0.89 to $57.51, Research, Estimates) are in a 52-week range of $70.62 to $41.41.
Dan Veru, portfolio manager with Palisade Capital Management, sees economic visibility benefiting Genesee & Wyoming Inc., a short-line and regional freight railroad operator.
| Dan Veru's picks
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"They don't move people but they just move types of raw materials. And cold weather, by the way, favors the railroad industry because a lot of utilities utilize coal and there's been a lot of switching from gas to coal in the last several years," Veru noted.
Veru's second selection is Enzon. "Enzon is partnered with Schering-Plough for probably the largest biological launch, which is the Hepatitis C product that they have," he said. "They're also making an acquisition from Elan, which is a troubled company right now but this acquisition that they're making is very attractive financially. And there's actually price-to-earnings ration with Enzon, which is somewhat unique from biotechnology- related companies. We've been buying it in the $17-to-$20 range and we think from here there's probably upside to the low $30's."
Funds under Veru's management own stakes in the companies mentioned.
Shares of Genesee & Wyoming (GWR: up $0.38 to $20.27, Research, Estimates) are in a 52-week range of $26.30 to $15.70.
Enzon (ENZN: up $0.66 to $19.86, Research, Estimates) shares have been between $61.54 and $15.50 in the last year.
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