NEW YORK ( TheStreet) -- While some investors are claiming that the stock market is approaching bubble territory, Russell Croft, manager of the Croft Value Fund, tells TheStreet's Gregg Greenberg that that's not the case.
While equities have had a solid run in 2013, he said that valuations are fair, especially considering the earnings growth.
Mylan (MYL) was one of his favorite picks, because of the solid earnings growth and free cash flow. He added that the company is leading the move in lower-priced healthcare with its generic drug line.
Mondelez International (MDLZ) was another pick, despite the noise from a few big name investors. Croft said he likes its core business.The snack business continues to grow at 5% to 7% annually, which is good for food. He added that improving margins should drive the long-term growth for the company and its earnings. Croft said National Fuel Gas (NFG) and Plum Creek Timber (PCL) were two other top picks. The former has smooth and consistent earnings while the latter has exposure to the housing market and is the second largest timber owner in the U.S. And despite being a REIT, Plum Creek Timber seems to be in good shape. Croft noted the recent bullish comments from management and the company's first dividend raise since 2007. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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