From his vantage point as Loomis & Sayles' chief market analyst, Sowerby sees plenty of stocks that fit his value-investing philosophy. Loomis & Sayles' funds collectively are invested in more than 100 stocks, but he managed to pick out five that he finds particularly worthy of attention. These companies all have fallen from their peak levels, and, Sowerby believes, offer steady earnings growth and reasonable levels of debt.

Perrigo

"This maker of generic over-the-counter drugs is going to pick up business as the patents run out on brand name drugs for heartburn. It's in the right space now as this country tries to keep pharmaceutical costs down."

Varian Medical

"It's a little expensive, you do have to pay up for quality, but the good news is that the stock is 40 percent off its highs. Varian has a new, non-invasive radiation treatment for cancer that looks very favorable."

Target

"Target offers 13 to 14 percent annual earnings growth and it's trading at 25 percent off its highs. It's not often that you can buy this kind of quality at this discount. For a retailer that you want to buy and tuck away in your portfolio, I can't think of any better names than Target."

Masco

"I'm biased since Masco is a local company based in my state of Michigan, but this maker of kitchen fixtures and cabinets is very consistent, with great management. It's widely acknowledged as a solid company, very steady player. It's an opportunity to play the rejuvenating economy, as people refinance and spend those refinancing dollars on home improvement."

KeyCorp

New York Community Bancorp

"With smaller, mid-size regional banks, there's some opportunity there as well."

John Wiley

"A book publisher that's underfollowed on Wall Street. Wiley has the potential to be bought out at $30 per share."

Martin Cohen's picks

The low interest-rate environment of the past several quarters has been very good to the real estate investment trusts that Cohen focuses on, but he points out that the group, as a whole, is still trading near the lower end of its historical range. Over the long term, REITs have generally provided a return of 10 to 15 percent annually -- a goal that should be easily achievable in the future, Cohen says. REIT dividends are already about 7.5 percent on average, so their stock prices wouldn't have to rise much each year to hit the 10 percent mark.

Simon Property Group

General Growth Properties

"Simon and General Growth are the two largest owners of regional malls in this country. The consumer has been such a strong factor in the economy that shopping mall owners have done extremely well as a result.

"Simon also got a boost when it was recently added to the S&P 500. And General Growth's second-generation managers have been a pleasant surprise, they're very astute."

Equity Residential

"Equity is the largest owner of apartments, so it's kind of an index fund of apartments. Home sales have done well lately, but as home ownership becomes more expensive, that will affect the propensity to rent. And the construction of multi-family units has already started to decline, so that supply is starting to go down."

Avalonbay Communities

"Avalonbay also specializes in residential buildings, but they have stronger markets, higher-end apartments, than Equity Residential. Avalonbay owns apartment complexes in New York and northern California, where there's a high barrier to entry because those housing markets are so expensive. When the economy recovers, Avalonbay will fill every vacancy they have."

Vornado Realty Trust

"It's the largest office owner in New York City and Washington, D.C., the two top office markets in the country. Offices have been in a downdraft lately, but there are very long leases on these buildings, so the cash flows are very steady, dividends are very steady. There's virtually no new office construction in those cities, therefore a better economy will bring much better fundamentals for them. I see double-digit earnings growth for at least the next two years."