NEW YORK (CNN/Money) -
With the Dow still flirting with the 10,000 mark amid continued signs of a U.S. economic recovery, two money managers appeared on CNNfn to suggest some stocks in the retail, medical device and technology sectors.
Ken Schapiro, president of Condor Capital Management, likes the cash flow of industrial device firm Danaher Corp.
"I think one of the nice pieces of it is, it's growing around 15 percent. They're in a lot of environmental areas and they're also heavily into the smart tags that Wal-Mart has just recently announced that they're going to be employing in the next year or two," he noted. "So the company generates like 140 percent of their earnings per share in cash flow, and we think that that's an unbelievable number."
| Ken Shapiro's picks
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Schapiro's second selection is IBM.
"But here's a company that's only up 14 percent in high-tech land when the Nasdaq is up 40 percent. So software and services and storage are kind of the plays in the high-tech area, and I think IBM can potentially show some earnings increases," he added. "IBM's going to be the beneficiary of increased business spending and a pretty reasonable valuation at only 20 times earnings."
Michael's Stores rounds out Schapiro's picks.
"The stock is only selling at around a price-to-earnings ratio of 15 and has showed some very good earnings growth. I think it's a time to shift your kind of retailing dollars from the discounters more to the specialty players," he said. "I think people are nesting more, so I think a Michael's Stores is going to continue to do well."
Funds under Schapiro's management own stakes in the companies mentioned.
Shares of Danaher Corp. (DHR: up $0.52 to $82.59, Research, Estimates) are in a 52-week range of $59.55 to $85.29.
IBM (IBM: down $0.08 to $89.58, Research, Estimates) shares have been between $73.17 and $94.54 in the past year.
Shares of Michael's Stores (MIK: up $0.13 to $48.04, Research, Estimates) are in a 52-week range of $20.06 to $50.62.
Norm Steinberg, portfolio manager with Steinberg Global Asset Management, likes the valuation of agricultural firm Bunge.
"This is a company that we have a price target on of about $38 a share. The company is in the fertilizer business, soybeans and so on. They operate in 17 different countries, and they pay you a small dividend," he said. "It's also selling at about 9.5 times earnings."
Steinberg's other selection is Johnson & Johnson.
| Norm Steinberg's picks
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"We've got a $65 target on it. The company will earn $3.24 in '04 and it's trading like they are only in the stent business. But this is a major consumer-products company," he noted. "Just put it away. It's a great company. It's a core holding, a great consumer stock; not just the stent business, so don't compare it to Guidant or anyone else."
Funds under Steinberg's management own stakes in the companies mentioned.
Shares of Bunge (BG: up $1.16 to $28.24, Research, Estimates) have been between $21.65 and $31.13 in the past year.
Johnson & Johnson (JNJ: down $0.79 to $50.69, Research, Estimates) are in a 52-week range of $48.05 to $59.08.
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