Nuance Comm. Inc. (NUAN) To Do Well in 2010

Talking with CNBC, David Kestenbaum, Managing Director of Morgan Joseph, picked Bally Technologies Inc. (NYSE: BYI) as one of his favorite stocks for Year 2010.

He said that the casino industry is currently underinvested and hence is expected to do well this year. He also said that Bally Tech. is gaining market share but still is priced cheaper than its peers.

His other pick was Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD), which operates in a protected sector. The stock is likely to do well as the firm is gaining market share in a growing industrial sector. Great Lakes is also expected to benefit from the stimulus package.

Nuance Comm. Inc. (NASDAQ: NUAN) also figured in his list. According to David, the stock is likely to benefit from new legislation banning texting while driving. Nuance Comm. Inc. provides voice recognition solutions. The company is also expected to come up with new solutions for the healthcare industry.

Pep Boys (NYSE: PBY) made it to the list on the strength of its core competence. David stated that Pep Boys has been experiencing steady growth. It also has implemented cost cutting measures successfully amounting to $16 million. He branded Pep Boys as a turnaround story in the attractive automotive segment.

Raytheon (NYSE: RTN) operates in the defense sector. Raytheon’s patriot missile sales have been gaining traction and they are doing well internationally.

His last pick was Volcano (NASDAQ: VOLC) which is expected to come up with newer products for hospitals.