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Large vs. Small-Cap Picks—Buy These Now: Strategists

Quality, great visibility, good returns and phenomenal cash flow are things that investors look for when investing in large-cap consumer staples, said John Faucher, senior analyst at JPMorgan.

Specifically, Faucher sees further upside for Coca-Cola.

“The stock is only up 2 to 3 percent year-to-date, so it’s underperformed versus the market,” Faucher told CNBC. “So you’ll continue to see it grind up slowly.”

Faucher said the beverage giant could gain about 15 to 20 percent over the next 12 months.

Small Oil?

Meanwhile, Jason Wangler, vice president of SunTrust Robinson Humphrey, said he prefers small caps such as Gulfport Energy.

“You still have a lot of value in the oil sands, for instance—a play that’s not creating revenue right now, but does have lot of value,” he noted. “Not only with what we’ve had in the Middle East happening, but with oil prices getting better, that’s still a big play for them as well.”

Wangler has a “hold” rating and a $43 price target on the stock .

“I think there’s still a lot of running room left for this company.”

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Scorecard—What He Said:

  • Faucher's Previous Appearance on CNBC (Aug. 17, 2010)

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More Market Intelligence:

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CNBC Slideshows:

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CNBC Data Pages:

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CNBC's Companies in the News:

McDonald's

  • McDonald's to Fill 50,000 Jobs as Business Grows

Pfizer

  • Pfizer Selling Capsugel to KKR for $2.38 Billion

GE*

  • GE's Immelt Defends Nuclear Industry Safety Record

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Disclosures:

Faucher does not own shares of KO. KO is/was in the past 12 months a client of JPMorgan. During the past 12 months, JPM provided non-investment banking securities-related service and non-securities related services to KO. JPMorgan and an affiliate has received compensation in the past 12 months for products or services other than investment banking from KO.

No immediate information was available for Wangler or his firm.

*GE is a minority shareholder in NBCUniversal.

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