These are the best long-term stock buys, pro says

Slow & steady market

A steady economy and low market volatility make this the perfect environment for investing in stocks, Fred Alger Management's Daniel Chung told CNBC's "Power Lunch."

The Dow and the both hit record highs Friday after the May jobs report showed a gain of 217,000 jobs—bringing the number up to a pre-recession level.

Investors leaving the bond market are looking to put their money somewhere, Chung said. He thinks equities "are primed to take off as this rotation continues over the next couple years."

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For investors looking to jump in, Chung has two names he said are among his firm's best long-term holdings: Google and Gilead Sciences.

Google signage is displayed in front of the company's headquarters in Mountain View, Calif.
David Paul Morris | Bloomberg | Getty Images

"As growth stocks, they have sold off significantly from their peaks and I think they're offering excellent growth and actually value for investors right now," he said.

Chung likes that Google shares are trading at 15 times next year's earnings, even as top-line growth in its core business is 20 percent.

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"This is a highly innovative company," he said, citing its driverless cars as an example.

Gilead, Chung said, is not trading at an expensive multiple and is a great example of how there are still opportunities in high-growth companies not necessarily connected to the economy.

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Fred Alger Management, which manages $21 billion in assets, holds stocks for an average of nine months to three years, although it has held both Google and Gilead for longer, Chung said.

—By CNBC's Michelle Fox. CNBC's Kerima Greene contributed to this report.

Disclosure: Chung does not own GOOG or GILD directly in his personal or family accounts. These companies are owned or have been owned in various Alger mutual funds where Chung and his family are investors.