For 2015, Sudhir Nanda, who oversees the T. Rowe Price Diversified Small-Cap Growth fund, recommends Toro, Brinker International and Marriott Vacations Worldwide stock, states Time's Money magazine. William Nygren and Win Murray, managers of the Oakmark Select fund, recommend Oracle, Apache and Bank of America stock.
Nanda's investment strategy typically revolves around spin-offs, explains Money. This is because such firms generally receive financial assistance from their parent companies that help boost growth. In general, Nanda eschews high turnover and prefers stocks that show long-term promise.
Nanda recommends Marriott Vacations Worldwide, a firm that spun off Marriott Worldwide in 2011, Money explains. Analysts expect the company's revenues to rise faster than those of its competitors as the job market gradually improves. Brinker International, the spin off that operates the Chili's casual restaurant chain, and Toro, the lawn care product firm that also owns snowplow manufacturer Boss, have similarly positive outlooks.
William Nygren and Win Murray's investment strategy primarily revolves around undervalued large-cap companies, Money states. The two managers recommend Bank of America, a firm with a price-to-earnings ratio that is significantly below that of similar firms. However, Bank of America generates comparably greater cash flow than competing firms, and this makes the company's stock a particularly attractive pick.