Stock Valuations Are Still 'Quite Reasonable': CIO

Despite the big rally markets have recently had, stock valuations are still "quite reasonable," said Art Nunes, CIO of Northwest Asset Management.

“Corporate profits have continued to rise and beat expectations for the last two years … so as long as earnings continue to beat estimates for the majority of companies, and valuations seem reasonable, we’re going to remain bullish,” Nunes told CNBC.

Nunes advised investors to target some of the “faster growing areas” of the markets such as small- and mid-cap stocks and international commodities.

“There are also plenty of ETFs that give investors exposure, but I wouldn’t chase prices,” added Nunes. “I’d wait for them to pull back and then I’d step in and buy them.”

Nunes Likes:

iPath DJ UBS Commodity ETN

iShares MSCI Canada Stock Index

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Scorecard—What He Said:

• Nunes' Previous Appearance on CNBC (Apr. 4, 2011)

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More Market Intelligence:

• Pullback Is Correction in 'Ongoing Bull Market': Pro
• Cramer's View of the Market Is Now 'Grim'
• Buy the Dips—Markets Are 'Long and Strong': Strategist

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CNBC Slideshows:

• Hottest Commodities of 2011

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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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Tuesday's Top Dow Laggards (as of this writing)

Alcoa

Chevron

Exxon Mobil

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Disclosures:

No immediate information was available for Nunes or his firm.

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Disclaimer