Investors focused on fundamentals should cast their gaze toward health-care IT, Yana Barton, portfolio manager at Eaton Vance Management, said Tuesday.
Health care and information technology are both sector leaders, and stocks positioned at their intersection present some of the best opportunities where it pays to take risk, she said.
"Health-care IT is probably at a sweet spot right now as the industry is undergoing a seismic shift from fee for service to something that is more focused on value-added service," Barton told CNBC's "Power Lunch."
One of Barton's top picks is Cerner. "It's a large-cap health-care IT market leader that basically provides both services and systems that enable companies to provide the analytics, compliance and revenue-cycle management that can help them provide better value add to their clients."
Cerner also boasts metrics most large-cap companies "would die to have," she said; 75 percent of its revenue is recurring or subscription based and the company has $13 billion in backlogs.
"We like that space because we think it will continue to do well because of these megatrends that it's part of," she said.
Barton also likes Illumina, a provider of next generation sequencing solutions focused on unlocking the power of the genome for preventive clinical care. She told CNBC less than 0.1 percent of the world's population has been fully sequenced, and the technology has broad application, including in oncology, prenatal testing, forensics and agriculture.
—CNBC's Jackie O'Sullivan contributed reporting to this story.
Disclosure: Barton owns shares of Cerner and Illumina, but her family does not. Eaton Vance Management does not own greater than a 1 percent share of the stocks, nor does it provide investment banking services to Cerner or Illumina.