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Hide from Fed taper with 3 stocks: Invesco's Sloan

Stocks will likely drop 15 percent when the Federal Reserve ends its monetary easing policy, but three plays should continue to perform, Ron Sloan of Invesco said Tuesday.

"Companies with a lot of pricing power that are on the more cyclical end of the curve" would do well, as well as those with less exposure to the consumer, he said. "So, you want to be in businesses that basically sell vital components or subsystems to larger customers, where the customer is indifferent to price but the need is critical for the product."

On CNBC's "Halftime Report," the senior portfolio manager, who oversees $12 billion in assets, shared his top three stock picks.

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HCA: "You've got health care with HCA," Sloan said. "Basically, the big, bad debt reserves that have been consistently on hospitals' books basically go away in an (Affordable Care Act) environment."

Cameron: Sloan said that this was a company reinvesting in its business. "They missed the last quarter deliberately to reinvest in this joint venture with Schlumberger, which makes them much, much more competitive," adding that the margins would accrue "longer term as opposed to tomorrow." That explained the stock's 15 percent decline. "Hurray, a wonderful buying opportunity in a great company in my view," Sloan said.

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Parker Hannifin: This "is the penultimate company selling a lot of SKUs that are critical to their customers and which they have a lot of pricing power in."

Sloan's fund has positions in all three stocks. His top five holdings include American Express, Berkshire Hathaway, Progressive, Sanofi and General Electric.

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

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