Shares of Power Integrations (POWI - Get Report) are flat so far this year, but the advance of so-called "rapid charge" for cell-phone batteries will juice up the integrated circuit-seller in the coming year, said Sam Dedio, portfolio manager at Patrumin Investors.
"It's great ... because it's a product cycle for them and they get to charge higher ASPs," said Dedio. "We'll see the inventories rebalance again, so that's great for revenue, earnings growth and margins, so they get operating leverage on the business as well."
Dedio, who previously served as the head of U.S. equities at Artio Global Management, is also positive on shares of Ryder System (R - Get Report) , which have dropped more than 27% year to date. While there is growing worry that a slowdown in global trade will drag U.S. transport stocks further down, Dedio said he expects trade to pick up and Ryder's stock to rebound.
"The economy is cyclical, therefore we expect this stock to lead the rest of the market ... into a recovery later in the year and into 2016," said Dedio. "There's a lot of operating leverage pent-up and they are also introducing some logistical software management for companies that also adds to margins."
"There are only two companies now you can really invest in, to play the packaged-gas or industrial-gas complex," said Dedio of Air Products & Chemicals jump in "scarcity value".
Finally, Dedio is a fan of Super Micro Computer (SMCI) , even though the server-provider's stocks has lost a third of its value thus far in 2015. Shares of the company were hit over an accounting issue that Dedio said is behind it.
"We think it's a one-time event and it was immaterial to the amount of sales that had to be re-recorded," said Dedio. "Once this is past, the shorts will have to cover and the fourth quarter is usually a strong quarter for the company."