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10 Winning Picks For Your Portfolio: Market Pros

Tuesday, 15 Jun 2010 | 7:21 PM ET

The upcoming earnings season will help the markets break out from this narrow trading range, said Robert Zagunis, co-portfolio manager at Jensen Investment Management, and Keith Wirtz, president and chief investment officer of Fifth Third Asset Management. They discussed their best plays.

The Early Tick
A quick check on the markets, with Keith Wirtz, Fifth Third Asset Mgmt. and Robert Zagunis, Jensen Investment Mgmt.

“When we get into the second quarter earnings season...that will probably be the time when we break out of this trading range,” Wirtz told CNBC.

“All you need is an uptick on the topline and earnings will be pretty significant throughout the year,” said Zagunis.

Wirtz Favors:

Occidental Petroleum —“We think over the long-term, demand is going to outpace supply growth,” Wirtz said. “You have to have some energy representation in your portfolio, but the last thing you want is have exposure to the Gulf [of Mexico].”

“They’re also a big player in the Middle East and as a pure play, it’s much better than what we’re seeing in the gulf right now,” he said of the firm.

CME Group —“This is a company whose profitability is driven by transaction activity and as volatility in the marketplace increases…we’re looking at increased volume in the futures market," he said.

"And eventually when the Fed raises interest rates, we’re going to see a lot of play in the interest rate futures market and this is a perfect play for that as well."

Zagunis Favors:

Consumer Staples: Colgate-Palmolive , PepsiCo

Information Technologies: Adobe , Cognizant Technology

Health Care: Medtronic , Abbott Labs

Industrials: Emerson , United Technologies

Scorecard—What They Said:

  • Wirtz's Previous Appearance on CNBC (Apr. 17, 2010)
  • Zagunis' Previous Appearance on CNBC (Nov. 9, 2009)

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More from Stock Pickers — Read and Decide:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

Zagunis owns shares of MDB, ABT, EMR, UTX, CL, PEP, CTSH and ADBE via ownership of his funds.

Wirtz owns shares of OXY and CME via ownership in funds he manages.

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Disclaimer

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ABT
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ADBE
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CL
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CETV
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CTSH
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EMR
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MDT
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OXY
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PEP
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UTX
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