NEW YORK (CNN/Money) -
With the market hitting a recent skid, two money managers appeared on CNNfn to suggest some stocks they believe will move higher in the coming weeks.
Alan Kral, portfolio manager with Trevor Stewart Burton & Jacobsen, likes the diverse exposure of Merrill Lynch as corporate activity and the economic recovery pick up.
"Merrill Lynch has some brokerage exposure, and it also has exposure to IPOs, capital markets and asset management," he said. "All three or four of those areas are going to be doing very well as the economy recovers," Kral said.
| Alan Kral's picks
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His other choice is industrial manufacturing firm Dover Corp.
"We like because it makes the nuts and bolts that go in the plants and it's very sensitive to capital spending. We still think capital spending is coming back," Kral said.
"It started in August. It hasn't quite hit the boom that we're looking for but we think it will get much stronger."
PepsiCo rounds out Kral's picks. "It's got the leading franchise in salty snack foods. Plus, right now, it's got the benefit of the weak dollar behind it with its international options. As long as the dollar is weak, Pepsi will be a good stock."
Funds under Kral's management own stakes in the companies mentioned.
Shares of Merrill Lynch (MER: down $1.10 to $62.10, Research, Estimates) are in a 52-week range of $30.75 to $64.89.
Dover Corp. (DOV: down $1.62 to $38.14, Research, Estimates) shares have been between $22.85 and $44.13 in the last year.
Shares of PepsiCo (PEP: up $0.03 to $52.62, Research, Estimates) are in a 52-week range of $37.10 to $52.84.
Lori Wachs, portfolio manager with Delaware Investments, likes the growth potential of retailer Bed Bath & Beyond.
"As they open up more Christmas Tree Shops, these stores are 50,000-square-foot prototypes versus the 30,000 at a regular Bed Bath & Beyond. So the square footage should start to increase," she said. "And if you look at the relative multiple, typically, as the leader in the space, it's been at a 60 to 80 percent premium to the S&P. Now it's down to 40 percent, so we think there is upside."
| Lori Wachs' picks
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Wachs' other pick is Outback Steakhouse.
"Square footage growth should start to increase from 10 percent to more like 15 percent. The comps should continue at this high single-digit range. They have a few new initiatives in place. New fish on the menus, smaller portions, so we like it," she said.
"And there had been an overhang due to people concerned about beef prices but they have some offsets in other commodities."
Funds under Wachs' management own stakes in the companies mentioned.
Shares of Bed Bath & Beyond (BBBY: up $0.06 to $40.61, Research, Estimates) are in a 52-week range of $30.18 to $45.
Outback Steakhouse (OSI: down $0.21 to $48.60, Research, Estimates) shares have been between $31.70 and $49.58 in the last year.
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