Energy, Industrials Top Analyst's List
Dan Manion, senior portfolio manager of the Sentinel Common Stock Fund, isn't afraid of getting burned in energy stocks -- and he's strong on industrials, as well.
"We continue to look for the best combination of strong fundamentals and reasonable valuations," Manion told CNBC. "We continue to see it in the energy sector."
But he admits to becoming more selective in energy shares.
"Crude prices at $125, to us, look susceptible to a bit of a sell-off, short-term," he said, but added, "If you look at the earnings power of some of the integrated major stocks, we actually think they're quite compelling."
"Chevron Texaco is a name we'd be adding to, currently," he said. "I think it has the best production growth profile among the integrateds; if you look at the Unocal acquisition, which was made about three years ago, I think that's going to prove to be a really shrewd deal."
On the industrial front, Manion likes United Technologies, Honeywell , and General Electric.
"The play here continues to be demand for more energy-efficient industrial equipment," he said.
"It just makes sense to us that you're going to see continued strong demand for more efficient aircraft engines, building controls, locomotives."
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Disclosure information for Manion and his company was not immediately available.