NEW YORK (TheStreet) -- It's been a bumpy road for the S&P 500 this year but it has still churned out a 3% gain so far. However, there's still value to be had, according to Wayne Wicker, CIO for Vantagepoint Funds.
Starting with energy, the sector had been decimated following the decline from its summer highs. However, over the past few months, oil and oil-related stocks have enjoyed a decent rebound. Two energy stocks Wicker says have "first-mover advantage" and "great resources" are Consol Energy (CNX) and Chesapeake Energy (CHK).
Investors who have a very long-term time horizon are selectively looking for value in the energy sector, he explained. Over time, other investors will likely realize the value that these stock present.
While a slowdown in earnings growth has plagued many sectors and multinational stocks, one sector that continues to do well is health care. In particular, Biogen (BIIB) continues to generate impressive earnings and tends to top estimates "time and time again," he said.
The company will consistently reward long-term shareholders because its current drugs continue to do well and new treatments are being developed in Biogen's pipeline.
Wicker also likes Microsoft (MSFT). While the company spent roughly 10 years stuck in a rut, the new and improved Microsoft led by CEO Satya Nadella is focused on cloud and mobile, two prime growth engines. Microsoft has been gearing more of its offerings to be service-based, which is helping to spur revenue growth, he said.
As for what to avoid, Wicker says stay away from consumer discretionary stocks. Gas prices have fallen tremendously over the past nine months but, contrary to what many investors believe, consumers have been saving their extra cash, not spending it, he concluded.