NEW YORK (TheStreet) -- The market has been tricky to navigate, especially with plunging oil prices. However, Kevin Toney, portfolio manager for the American Century Mid Cap Value Fund (ACMVX) , told TheStreet TV he has three picks for investing next year, starting with Republic Services (RSG) .
The stock is up 18% on the year and pays a dividend yield of 2.86%. However, Toney likes the company for its stable business model and high return on capital. While the waste removal company has battled low prices and volume increases, that should change. Why? As the economy improves, there will likely be more commercial and residential trash. An improving economy should also justify charging higher prices.
Next is LifePoint Hospitals (LPNT) , which he says has a great opportunity on its hands as more Americans visit health care facilities and utilize health services.
Thanks to an improving labor market, more employees are getting improved benefits with their jobs. Also, the Affordable Care Act is making it easier for people to make more frequent visits as well. This should ultimately benefit LifePoint Hospitals, Toney said.
Sysco SYY and Republic Services RSG data by YCharts
Finally, Toney's third pick is Sysco Corp. (SYY) , the leading food distributor in North America. The company is twice the size of its closest competitor but it has had issues in the past that should start to subside in 2015. He noted the company has faced rising food costs, big IT spending and weak restaurant traffic, which affects Sysco's customers.
The IT spending is expected to slow in 2015 and Toney is looking for food prices to stabilize. He also expects lower gasoline prices to boost consumer spending, which should help drive restaurant traffic higher.
-- Written by Bret Kenwell