Rafael Resendes of the Toreador Large Cap Value Fund sees the stock market changing from a momentum-driven market to a valuation-driven one. He names a number of stocks that he feels are very well positioned — and, yes, they're large-cap names.
Resendes acknowledges that Family Dollar Stores posted a 14 percent increase in quarterly profit and boosted its outlook — but he prefers Kohl's. He noted that while investors will be paying for Family Dollar's planned expansion, Kohl's will be shrinking its topline 5 percent per year over the next five years.
In the consumer space, he also likes CVS Caremark.
He praised the company's "great opportunities in terms of what they're doing from a cost-savings perspective in the health-care area."
Moving to energy and materials, he recommended miner Freeport McMoRan.
"We think it provides some long-term opportunities, particularly in the infrastructure (program of) the new administration," he said.
Also on his energy list is Valero.
Disclosure information for Rafael Resendes was not immediately available.