Lowe's (LOW) was keeping pace with the S&P 500 until last week's second quarter earnings miss knocked six percent off the home improvement retailer's stock. Brian Milligan, portfolio manager for the Ave Maria Growth Fund (AVEGX) , believes any short-term setback will be temporary. 'Consumers are investing more in their homes and Lowe's and Home Depot are poised to take advantage of that trend,' said Milligan. 'It's a big tailwind.' Graco (GGG) , up two percent year-to-date, is another one of Milligan's top picks. The fluid dispenser-maker fell almost 10% last month after it missed Wall Street's second quarter earnings estimate by a dime a share. Milligan is also bullish on Cognizant Technology (CTSH) , which has seen its shares drop four percent so far in 2016. 'Cognizant's health care and financial verticals hurt them in the second quarter but they will recover,' said Milligan.

More from Video

Racing Legend Mario Andretti Has Great Advice for Retirees

Racing Legend Mario Andretti Has Great Advice for Retirees

Arianna Huffington on Burnout, Tech-Life Balance and Why Amazon's CEO Agrees

Arianna Huffington on Burnout, Tech-Life Balance and Why Amazon's CEO Agrees

Nucor Is Waiting to See if Steel Tariffs Will Be Implemented, Jim Cramer Says

Nucor Is Waiting to See if Steel Tariffs Will Be Implemented, Jim Cramer Says

Jim Cramer: Will Apple or Amazon Become the World's First Trillion Dollar Stock?

Jim Cramer: Will Apple or Amazon Become the World's First Trillion Dollar Stock?

Video: Jim Cramer on Apple, Amazon, Alphabet and Nucor

Video: Jim Cramer on Apple, Amazon, Alphabet and Nucor