Dow to Close Around 13,000 This Year: Stock Picker

The overall market is in great shape and stocks should continue rising, said Neil Hennessy, portfolio manager and CIO of Hennessy Funds.

“I still see another 6 percent on the upside this year and we’ll close around 13,000 [on the Dow],” Hennessy told CNBC.

Hennessy said his favorite sector is the low-end retailers. (Scroll down for his full stock picks.)

“That’s where you’re seeing M&A activity,” he explained.

Hennessy’s Picks:

Family Dollar

Dollar Tree

Tractor Supply

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Scorecard—What He Said:

• Hennessy's Previous Appearance on CNBC (Dec. 29, 2010)

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CNBC Data Pages:

• Dow 30 Stocks—In Real Time
• Oil, Gold, Natural Gas Prices Now
• Where's the US Dollar Today?

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CNBC Slideshows:

• Highlights from Fashion Week Fall 2011

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Disclosures:

Hennessy owns shares of FDO, DLTR and TSCO via ownership of his mutual funds.

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Disclaimer