NEW YORK (TheStreet) -- After the S&P 500's 10% run from the mid-October lows, it may seem like it's hard to find a bargain in the stock market. That is, unless you consult with Alan Stevens, portfolio manager for the Catalyst/Lyons Tactical Allocation Fund.
Stevens' first pick is H&R Block (HRB) . The stock has been unusually volatile this year, but 2015 should be a smoother ride for shareholders. The company has struggled to offload its banking business, which has been the culprit for much of the up-and-down price action.
The company plans to sell the unit to BofI Federal Bank (BOFI) , but has hit several regulatory snags along the way. This is simply a delay, Stevens explained, and the temporary issue will be solved sometime in 2015.
"I think the Christmas season is going to be good," he added.
Shares of Gap are essentially flat in 2014, dropping just 0.8% and are down 5.9% over the past 12 months.