NEW YORK (CNN/Money) -
With the U.S. markets looking for a new catalyst to drive them higher after various signs that an economic recovery is well under way, two money managers appeared on CNNfn to suggest some stocks in the media, medical device, railroad, and software sectors.
Dan Veru, portfolio manager with Palisade Capital Management, sees shares of carrier Genesee & Wyoming benefiting from an overseas venture.
| Dan Veru's picks
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| Regent Communications (RGCI)
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"These guys are based in Connecticut, but they own 50 percent of a railroad in Australia. Australia is a major partner with China now. So I think Australia is going to be a big beneficiary of China's growth," he said. "And one of the ways you can play it is by owning a railroad. I have heard talk of possibly spinning out to shareholders or taking public their Australian subsidiary, which would creating a tremendous amount of value for shareholders."
Veru's other selection is radio broadcaster Regent Communications.
"We think for 2004, in an election year, you're going to see a lot of advertising spending on the part of the candidates for the various positions that they have. And it's typically election years that are good time to own radio-related stocks," Veru noted. "On top of that, you've got the economy recovering and there will be more advertising spending."
Funds under Veru's management own stakes in the companies mentioned.
Shares of Genesee & Wyoming (GWR: down $0.10 to $25.90, Research, Estimates) are in a 52-week range of $12.70 to $26.99.
Regent Communications (RGCI: down $0.06 to $6.00, Research, Estimates) shares have been between $4.50 and $7.10 in the last year.
Michael Carty, portfolio manager with New Millennium Advisors, likes the profit potential behind Biomet.
"It's a great performer in terms of earnings ability," Carty declared. It's got a good balance sheet and has a high return on equity. Its got good operating margins and it's trading a little bit higher than the S&P 500 priced earnings multiple. But it has a higher growth rate and it's expected to do well over the next six to 12 months."
Carty's second pick is Patterson Dental.
| Michael Carty's picks
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"They've started some operations and some sales in Europe," he said. It's a company that just seems like it's the Energizer bunny here; it just keeps on going, producing profits and the stock market gains for us."
Citrix Systems rounds out Carty's selections.
"They go into enterprise technology where they allow companies to access all kinds of systems in a secure mode. The company continually introduces products," Carty observed. "We just jumped in, even at these levels, just about a week ago. We'll continue to buy this stock for many of our accounts. Our analysts are very high on it. We expect it to outperform the market over the next six-to-12 months."
Funds under Carty's selection own stakes in the companies mentioned.
Shares of Biomet (BMET: down $0.17 to $34.23, Research, Estimates) are in a 52-week range of $26.42 to $36.25.
Patterson Dental (PDCO: down $0.41 to $67.89, Research, Estimates) shares have been between $35.41 and $68.12 in the last year.
Shares of Citrix Systems (CTXS: down $0.30 to $25.26, Research, Estimates) are in a 52-week range of $8.25 to $27.86.
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