NEW YORK (TheStreet) -- The CNBC "Fast Money Halftime" show turned to Will Danoff, portfolio manager of the $120 billion Fidelity Contrafund (FCNTX) - Get Report, for some guidance on which stocks investors should buy.
Danoff reasoned that investors should start to rely more on picking individual stocks, as it's likely that the broader market won't enjoy the same type of appreciation that is has the past two years. He remains bullish on stocks and "bullish on America," but says he's looking for well-run companies that have great franchises and are generating a lot of cash.
He is looking for a small interest rate hike from the Federal Reserve, but overall expects rates and inflation to remain low going forward. He maintains that investor who seek great companies with investing time horizons of five to 10 years will do the best.
Specifically, he likes Facebook (FB) - Get Report, which is the fund's fourth largest position. CEO Mark Zuckerberg has done a great job, the company has a very valuable franchise with its 1.3 billion monthly active users and 900 million daily active users, and there is more monetization to come.
Danoff also likes Biogen (BIIB) - Get Report, which is a "fabulous company" due to its valuable drug treatments. Investors should be careful with the biotech sector, since not all companies have earnings or revenues. However, many companies in this "outstanding industry" have great treatments, strong pipelines and impressive revenues and earnings.
He also likes several financial stocks - mainly Wells Fargo (WFC) - Get Report -- which are undervalued. He also likes Apple (AAPL) - Get Report, the second largest position in the fund, as well as Google (GOOGL) - Get Report.
Apple has done a great job in the years since former CEO Steve Jobs prematurely passed away. The company's revenue and earnings are growing, as is its capital return, Danoff pointed out. Google has a "very strong balance" and impressive free-cash flow.
Danoff also has investments in private companies likes Uber, Pinterest, and Airbnb.
Facebook is a great company, but expectations have certainly climbed, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management. Instead, he argued that Twitter (TWTR) - Get Report seems like it would be the more contrarian pick in social media, as the sentiment is still rather bearish.
Companies like Facebook have great cash generation, as well as strong growth when it comes to earnings and users, said Pete Najarian, co-founder of optionmonster.com and trademonster.com. However, when that growth slows, it's time for investors to move on. Just look at the way IBM (IBM) - Get Report has performed over the past few years.
The conversation turned to retail, after Dorothy Lackner, an analyst at Topeka Capital markets, came on the show. She initiated L Brands (LB) - Get Report with a buy rating and $106 price target, citing growth opportunities for both its Victoria's Secret and Bath & Body Works brands.
For their final trades, Brown is buying the iShares U.S. Home Construction ETF (ITB) - Get Report, Terranova likes Whirlpool (WHR) - Get Report and Najarian is a buyer of First Solar (FSLR) - Get Report.