Stock Picks: Cigarettes & Cheap Food

Where are the market leaders now? Eugene Peroni of Advisors Asset Management and Peter Andersen of Congress Asset Management gave CNBC their insights -- and a few favorite stocks.

Peroni sees "no fresh new leadership" in terms of sectors.

"Very near-term, health care might be a little bit overbought, but on weakness it still represents a good longer-term buy," he said. He cautions that "we're not out of the bear market just yet," calling for one more low in financials -- then smooth sailing after that, for the remainder of the year.

Andersen said his firm is playing it safe and remains "somewhat defensive."


Andersen believes there is still "some wind left in the sails" of consumer staples.

Kraft Foods and Philip Morris International (spun off from Altra earlier this year) "still have a lot of good features that still have some staying power," he declared. Another food stock he favors as an inflation play: Ralcorp Holdings , which provides lower-priced store brands as alternatives to national "name brands."

Peroni likes infrastructure plays, particularly water stocks and defense contractors.

(Click for Water Stock Picks)


Disclosure information was not avaliable for Peroni, Andersen or for their companies.