Hightower's Link says these two stocks could perform well in Q4

The benchmark S&P 500 index is down a little under 2.0% since the start of September, but Hightower’s Stephanie Link says a “pause” was due considering September is known to be “seasonally weak”.

On the bright side, however, she picked two stocks on CNBC’s “Worldwide Exchange” this morning that she thinks could perform well in the fourth quarter.

Reasons why Link likes Expedia Group Inc

Link sees Expedia Group Inc (NASDAQ: EXPE) as one of the top reopening names. In her interview with CNBC, she said:

Link cited “strong margins” as another reason why she likes Expedia. Higher margins could result in about $2.0 billion in free cash flow that could fuel stock repurchase, she added.  

Expedia is down more than 15% from its year-to-date high in mid-March.

Link also sees upside in Prudential Financial

Another stock where Link sees potential for upside in the fourth quarter is Prudential Financial Inc (NYSE: PRU). Under the new management, the insurance company is shrinking operations and focusing on “growth areas” like emerging markets. Link said:

The stock trading at eight times earnings with a 4.5% dividend yield was among other reasons why Link likes Prudential. Shares of the U.S. company are already up about 30% year-to-date.