NEW YORK (TheStreet) -- Stocks pared earlier losses on Monday, as investors scooped up shares of beaten down stocks. At one point, the  Dow Jones Industrial Average fell 1,089 points before settling to a loss of about 400 points. 

"These declines are healthy for us," said Kevin Kelly, chief investment officer of Recon Capital Partners, based in Greenwich, Conn. "If investors are looking to pick and choose stocks for the long-term, they can go into names like PayPal (PYPL) - Get Report."

PayPal, which was recently spun-off from eBay (EBAY) - Get Report, gave up some of its earlier losses on Monday. "PayPal has zero debt, tons of cash on the balance sheet, they are growing in emerging markets and are the leader in their space," Kelly said.

He also likes utility Southern (SO) - Get Report, which dropped about 3% on Monday, as a defensive play. Southern announced a $12 billion acquisition of natural gas company AGL Resources (GAS) on Monday morning. "You're starting to see big, stable companies going out there and acquiring [companies], and this is the time to do that."

Other companies presenting great opportunities amid the global selloff include Apple (AAPL) - Get Report and Disney (DIS) - Get Report, Kelly said. Apple shares lost 22% from their high on Feb. 23, while Disney fell 21% since its peak on Aug. 4. Both stocks gave up earlier losses on Monday.

"There has been capitulation in these names," Kelly said. "Once we see the markets stabilize, those can be good over the long-term because they have grown their earnings and have solid balance sheets."

While some say the global selloff creates important buying opportunities, others aren't as sanguine.

A host of big-name stocks entered bear market territory, defined as a 20% drop or more from the stock's recent high, on Friday and into Monday. Oil giant ConocoPhillips (COP) - Get Report is down 38% since its high on April 15. Hewlett-Packard (HPQ) - Get Report slumped 29% from its Feb. 24 high.

Michael Ingram, a market analyst with BGC Partners, based in London, doesn't think those names are buys.

"Markets are embracing the sum of all fears," he said. "We had seen some sectors such as utilities, which act as bond proxies, hold up but even those are cracking. There's a problem with global growth."

Ingram said said there's no reason to be loading up on risk. "If you're going to venture into risk assets right now, that's like catching a falling knife."

Nick Colas, chief market strategist at Convergex, a New York-based brokerage firm, echoes the cautious sentiment.

"More than anything, you don't want to panic out of positions," he said. "It's just as risky to panic out of something as it is to pick the wrong stock to go back into."

Meanwhile, on Colas' Monday morning call to clients, he focused on leadership names that have pulled back in the technology and financials space. "Big cap banks look to be an area to get very interested in," he added.

Banks like JPMorgan Chase (JPM) - Get Report  lost over 4%, but pared earlier losses. Morgan Stanley (MS) - Get Report fell 5%, but also recovered from declines seen earlier in the session.