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Power Play: Bet on future growth with Cognizant

Cognizant Technology Solutions office in India.
Madhu Kapparath | Mint | Getty Images

Wall Street is bracing for a fourth consecutive quarter of profit declines, but this is not necessarily bad for stocks.

Allen Bond, co-portfolio manager of the Morningstar 5-star rated Jensen Quality Growth Fund, tells CNBC's "Power Lunch" on Wednesday earnings will be better in the second-half. "The U.S. stock market is in the midst of a positive, but uneven path thus far in 2016. We maintain a constructive near-term market outlook," Bond said.

Right now, he favors high quality companies with the ability to use internally generated cash to fund future growth initiatives, while increasing dividend payments and repurchasing shares.

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A large-cap name Bond likes is IT consulting and technology outsourcing services provider Cognizant Technology Solutions.

"The U.S. based company utilizes a client delivery model combining on-site technical and account management professionals with India-based offshore technical support teams to serve wide variety of customers around the globe. In our view, this nimble business model is a subtle yet critical competitive advantage for Cognizant as it allows them to efficiently partner with multi-national customers," Bond said.

Cognizant is higher during trading, but is down three-percent year-to-date.