Stocks are heading higher still, and three names appear poised to pop, Nuveen's Bob Doll said Tuesday on CNBC.
"The path of least resistance continues to be higher," he said. "We've got some ideal conditions, an economy that's operating on five or six out of eight cylinders. That's great for stocks because that keeps the pedal to the metal."
On "Fast Money," Nuveen's chief equity strategist and portfolio manager, with $120 billion in assets under management, said that any retrenchment would be mild.
"If the fundamental remain intact as they are, weak as they are, the correction won't be that much. It'd be a few percent, enough for us to try to have long-term horizons to be able to live through," he said.
"I continue to think some of the free-cash-flow stories are the place to be, and they come across lots of different cyclicals."
Specifically, he liked the following three stocks:
- Symantec: A technology company in the storage and security business with a new CEO just initiated a dividend, Doll said.
- Becton Dickinson: This company looks to post "high-single-digit growth at worst," he said.
- Raytheon: Doll liked that the company had "a lot of government business," as well as a price-to-earnings ratio of less than 10 and "a yield that's not far from 10 percent."
Doll noted that stocks as a whole had a higher yield than 10-year Treasuries.
"That's pretty rare, and I think a good opportunity," he said. "If I had the firepower, I would do the Great Rotation right now."
Trader disclosure: On March 12, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Stephen Weiss is long DKS; Stephen Weiss is long LCC; Stephen Weiss is long C; Michael Murphy is long BAC; Michael Murphy is long C; Michael Murphy is long GS; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long AXP; Joe Terranova is long GPS; Joe Terranova is long KORS; Joe Terranova is long SWN; Joe Terranova is long GS; Joe Terranova is long SCCO; Joe Terranova is long PANW; Joe Terranova is long VSI; Brian Kelly is long S&P futures; Brian Kelly is long Gold futures; Brian Kelly is short Copper futures.