H&R Block is a strong performer trading at a relatively cheap multiple, said Alan Stevens, portfolio manager for the Catalyst/Lyons Tactical Allocation Fund. Stevens added that the tax preparer will see far less volatility in the coming year once it solves its bank issue. He said Lockheed Martin has a high return on capital, yet still trades at an inexpensive multiple even though it is the priciest stock among defense contractors. Finally, Stevens is bullish on The Gap, saying the retailer will see a turnaround with its new management in the wake of a strong Christmas season.