Companies such as Susquehanna Bancshares Inc (NASDAQ:SUSQ), Manitowoc Company, Inc. (NYSE:MTW) and Valero Energy Corporation (NYSE:VLO) are among the analysts top picks in mid cap and small cap segments. A lot of investors have shown interest in the medium cap and the upper end of small cap sector lately. The growth of some of the companies in this sector is really impressive.
Michael Crofton, Philadelphia Trust Company CEO was on CNBC and he discussed few of the stocks where his company is investing. Crofton said that the market is in such a situation where it is back to fundamentals and is dependent on the economy. According to him the low interested rates are helping the market. Susquehanna Bancshares Inc (NASDAQ:SUSQ) was one of his favorites and there were few other companies such as Manitowoc Company, Inc. (NYSE:MTW).
Crofton mentioned how the lowest ever interest rates are helping the economy and he feels that if this continues then there might be better growth in Q3 and Q4. He said that the investors should be looking at sectors that can benefit from these low interest rates. He feels that the mid cap sector and the upper end of the small cap sector would perform better and he has invested in companies like Susquehanna Bancshares Inc (NASDAQ:SUSQ) which has a market cap of $1.9 billion. He thinks that Susquehanna Bancshares Inc (NASDAQ:SUSQ) would be a great acquisition for someone looking to expand in the banking space especially because it’s below its book value.
“We’re going down the capitalization range a little bit, we’re looking into midcap sector and maybe in the upper end of the small cap sector”. Crofton said
He said that Philadelphia Trust also likes Manitowoc Company, Inc. (NYSE:MTW) and he said that there is scope for growth there as the company is going to spin off the food services business which was hurting them. He feels that after the spinoff, Manitowoc Company, Inc. (NYSE:MTW) can focus on the crane business which is escalating now.
Peter Sorrentino of Huntington Asset Advisors mentioned that the housing industry is in a bad position even with a better job growth and he said that the auto sales have also held up and he feels that the auto loan industry is getting a little frothy.
“What we’ve seen; the housing numbers have slowed. If you look at the affordability index, prices have recovered pretty dramatically over the last couple of years.” Sorrentino stated about the housing industry.
Valero Energy Corporation (NYSE:VLO) is among the list of Sorrentino favorite stocks and the government has recently announced to lift the ban on Valero Energy Corporation (NYSE:VLO) to export oil. He said that there is nothing majorly wrong with the company and that it has good cash flow.