Second half playbook: Pros hunt for value

Second half playbook

With the first half of 2014 coming to a close, investors are placing bets on how the second half of the year will unfold.

The outpaced the Dow the first half of the year, and some pros expect that gap to close as the Dow picks up steam.

"We think quality will come back into effect and a lot of the more stable companies in the Dow will start to really realize some of their stride toward the end of the year," said Lee Partridge, chief investment officer at Salient Partners, in an interview with CNBC's "Power Lunch."

Mike Holland, chairman of Holland and Company, agrees. He thinks the bull run will continue, and said investors hunting for yield should look to technology stocks.

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There are "huge yields on these companies, way more than Treasury bonds," Holland told "Power Lunch."

"In fact, you've got very low valuations given the quality," he added.

Names on his buy list include Apple, Google, Microsoft, Intel, IBM, Chubb and Johnson & Johnson.

Trader on the floor of the New York Stock Exchange.
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However, Huntington Asset Advisors' Peter Sorrentino thinks we've already seen the best part of the year. He doesn't expect a huge selloff, but said the rest of the year will probably be just stock trading.

"We just don't see the earnings momentum going forward. Top line growth is really almost non-existent for a lot of industries. We think the consumer is really in the process of getting to roll over completely," he said in an interview with "Street Signs."

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His concern over the consumer stems, in part, from the housing market and the difficulty for potential buyers to get out of apartments and into homes.

"We're concerned because usually about six months after housing slows, you see retail sort of follow it down the same road," Sorrentino said.

To find value, he's focusing on the industrial sector—energy, manufacturing, agriculture. Specifically, he likes Peabody Energy, Valero Energy and Chicago Bridge & Iron.

Second half picks: SUSQ, MTW & VLO

Michael Crofton, president and CEO of Philadelphia Trust Company, told "Street Signs" that the market is at an inflection point—transitioning from being almost totally dependent on the Federal Reserve's monetary policy to coming back to a more fundamental approach that depends on the economy itself.

"If you believe the economy is going to expand in the third and fourth quarter, which we do … then you have to position yourself in those sectors of the market that can benefit from that and that maybe haven't participated to this point," he said.

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To that end, Crofton is looking at industrials and financials, and in the mid-cap sector and the upper end of the small-cap sector. Three names he likes are Susquehanna Bancshares, Manitowoc and Masco.

—By CNBC's Michelle Fox

Disclosures: Holland personally owns shares of Apple, Google, Microsoft, Intel, IBM, Chubb and Johnson & Johnson. Crofton owns Susquehanna Bancshares, Manitowoc,and Masco. Sorrentino does not personally own Peabody, Valero and Chicago Bridge & Iron, but owns them in funds.