Power Lunch

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Power Lunch

Power Play: 2 stocks to grow your portfolio

Workers weld frames for the new MiDi bus at New Flyer Industries in St. Cloud, Minn.
Jason Wachter | St. Cloud Times | AP

The Dow, and the Nasdaq are on track for a fifth week of gains as oil rebounds, up 45 percent since the market lows on February 11.

Fred Alger Management CEO and CIO Dan Chung tells CNBC's "Power Lunch" on Friday he believes the market can move higher from these levels.

"S&P still looks very inexpensive. It won't be a straight line up from here. We're in a transition phase, moving from bonds back into equities," Chung said.

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He's looking at companies capable of growing their earnings and his portfolios tend to be weighted toward the most innovative and most promising growth parts of the economy. Danaher is one of Chung's top picks.

Jill Cuniff, president of Edge Asset Management, looks for companies that can grow their dividend over time.

A key pick for Cuniff is Canadian bus manufacturer, New Flyer Industries.

"Municipalities are ordering more transit buses as their finances have recovered following the financial crisis and the recent federal funding bill (FAST act) gives five year funding for transit," Cuniff said. New Flyer recently increased its dividend 12.8 percent.

Danaher and New Flyer Industries are both higher during trading.