Shares of Dycom Industries (DY) have dropped 4% so far in 2016, but the telecom contractor will profit over the long-term because Americans are consuming more data and need better broadband service, said Jack McPherson, portfolio manager at Aristotle Boston.
"As consumer-oriented services like Netflix (NFLX) and the Internet of Things increase over time, demand for broadband will rise," said McPherson. "The networks will have to invest to keep up with demand and as a specialty contractor Dycom will benefit from that."
Aristotle Boston is an institutional asset management firm focused on value-added strategies. The firm's investment strategies include Small Cap Equity and Small/Mid Cap Equity.
McPherson is also bullish on Electronics for Imaging (EFII) , which is down 10% year-to-date. The industrial printer will benefit from "the transition from analog to digital" in McPherson's view.
Ardmore Shipping (ASC) is another one of McPherson's top choices despite the fact that the refined products transporter's shares have dropped over 30% thus far in 2016. He said the stock most likely bottomed out below $8 in February.
"They are getting dragged down with the energy sector as a result of the drop in crude oil prices," said McPherson. "But if you look at the supply/demand dynamics for the segment of the market they operate in, they are pretty attractive right now."
Finally, McPherson is a fan of Cross Country Healthcare (CCRN) , down 28% thus far in 2016, saying the health care staffing company will recover from its steep March drop after an earnings miss.
"The recent drop was the result of a couple of one-time items in their quarterly earnings," said McPherson. "As time passes this will go to the wayside and they will benefit from improvements they are making in the business."