Growth stocks are a better bet than value stocks over the next six months, Washington Crossing Advisors portfolio manager Chad Morganlander said in a new interview with CNBC's "Trading Nation."
Last week value stocks surged, Morganlander pointed out, largely as a result of a rising interest rate environment. However, growth stocks are ultimately going to outperform based upon revenue growth and earnings growth, he said.
Some examples of growth companies Morganlander pointed to on Wednesday included Microsoft, Cisco and Oracle, adding, "growth companies do really well when the global economy is doing well. We believe that it's still going to grow not only here in the United States, but on the developed side, as well as the emerging markets side."
"Usually the value index is comprised of oil and gas companies, as well as financial companies," he said.
Financials are one area, specifically, to avoid when it comes to value names, as the interest rate environment in the short term will not benefit financials "as much as everyone's expecting."
Though the S&P 500 financials sector is positive on the year, it is the third-worst-performing sector in the market only beaten to the downside by energy and telecommunications.
Furthermore, the value index is typically composed of oil and gas companies, tethered to beaten-down crude oil prices, and Morganlander would stay away from that area. Crude oil on Wednesday logged its worst day in four weeks.
