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Power Play: Go with the disruptors

Elon Musk, CEO of Tesla
Krisztian Bocsi | Bloomberg | Getty Images
Elon Musk, CEO of Tesla

Stocks are up about 3 percent since the losses from the post-Brexit vote. Rob Lutts, chief investment officer of Cabot Wealth Management, tells CNBC's "Power Lunch" on Friday he expects another 8 percent gain from these levels and has a year-end target of 2,350 for the S&P 500.

"We believe quantitative easing is working and will eventually stimulate higher U.S. GDP growth," Lutts said.

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In this environment, Lutts is looking at disruptors. "Disruptive companies that are solid growers are 'on sale' today," Lutts said.

A top pick for Lutts is Tesla Motors. "Electric energy platform is 4-5 times more efficient in the use of energy. Street analysts are too low in estimates," Lutts said.

Tesla is higher during trading, but is down 7 percent year-to-date.