Buy Estee Lauder, Danaher, Medtronic for the Long Haul -- Wells Fargo Manager
Estee Lauder's (EL) - Get Report cosmetics may see a huge sales spike on Black Friday, but investors are better off looking at the company over the long term than on a single day, said Margie Patel, senior portfolio manager with Wells Fargo Asset Management.
"They've been great as far as innovating -- developing new skin care products and acquiring new brands that keep a certain freshness," said Patel. "Even though they have a lot of exposure in emerging markets like China, I think the demand for their quality products will keep their sales moving along."
Shares of Estee Lauder are up 9% thus far in 2015.
Patel is also bullish on Medtronic's (MDT) - Get Report stock, which has risen 6% year to date. She said the maker of heart devices will continue to see steady demand for its products as the U.S. population grows and ages.
"I think they have a more certain future than many parts of the health care market," said Patel.
She is positive on shares of Danaher (DHR) - Get Report , up 12% this year, ahead of the company's split into a life sciences division and a test and measurement company.
"Often when a company splits, even the less desirable part often does surprisingly well because it attracts a new category of buyer," said Patel, adding that Danaher is "a good grower."
Finally, Patel is a fan of Sempra Energy (SRE) - Get Report , despite the fact that its shares have dropped 10% so far this year. She calls the company a "good value play" because it's primarily a utility but seems to trade as if it's an energy company.
"The bulk of its earnings come from its regulated utility business, which is steady and gradually growing," said Patel.
"I think it is down now because a lot of people don't like utilities and that it is sensitive to oil, even though that isn't really a driver of its earnings or revenue," said Patel.