Here's Why These Four Stocks Are Poised to Climb Higher

Portfolio manager Brian Milligan likes Lowe's, Graco, Cognizant Technology and Sally Beauty. Here is why:

1. Lowe's (LOW)

The company was keeping pace with the S&P 500 until last week's second quarter earnings miss knocked 6% 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."

2. Gracco (GGG)

The company is up 2% 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 per share. Nevertheless, Milligan said it "has no real competition" and a strong management team that will also overcome this bump in the road.

3. Cognizant Technology (CTSH)

The company has seen its shares drop 4% so far in 2016. Earlier this month the company reported better-than-anticipated earnings for the 2016 second quarter, but gave a weak third-quarter earnings per share forecast of between 82 cents and 85 cents on revenue of $3.43 billion to $3.47 billion. Analysts are looking for earnings of 86 cents per share on revenue of $3.54 billion.

4. Sally Beauty (SBH)

Milligan is positive on Sally Beauty (SBH) , down 50 basis points in 2016, calling the beauty supplier "recession resistant" as it continues to buy back stock.