Top stock strategist reveals his three favorite companies to invest in

A chief equity strategist and stock market expert shared the top three companies to invest in and what sets them apart from the rest.  

Robert Doll revealed that his favorite stocks are Cigna (CI), American Express (AXP) and Lowe's (LOW), he told The Kansas City Star.

In a 'momentum-driven' economy, Doll is confident in these companies for several reasons, including short and long-term gains for investors. 

Healthcare and insurance company Cigna 'has great fundamentals at a cheaper price,' Doll told the outlet. He also explained that the stock's price-earning ratio is at an over 30 percent discount to the market. 

Cigna's annual growth projection is 10 percent, based on its dividends and earnings. 

The upside to investing in credit card company American Express is its 'affluent client base' in comparison to its competitors, Doll said. 

He explained that increasing membership and usage connects with a rising net interest income. 

Doll told The Kansas City Star: 'So it should face fewer problems in an economic downturn. It is selling at a (high) valuation of 20 times earnings. 

'So you hold your nose and buy.'

Lowe's is the second largest home improvement company in America next to Home Depot. But Doll suggests that people invest in Lowe's because 'it has had good earnings.'

Home Depot profits more overall, but Lowe's is closing its profit gap and making improvements to their company. Doll essentially said the company's finances are in good shape.   

The only downside Doll pointed out was for Cigna. He said that the 'main risk' is the stock's ratio of cost to revenue is slowly increasing. 

Doll also offered up general advice about the kinds of stocks people should be looking into, as well as what he thinks the stock market's future holds.

He told The Kansas City Star: 'Predicting the end of it is a fool’s game - impossible. 

'Bears say the economy is weakening and earnings estimates are too high. They say the consumer is slowing, as evidenced by falling confidence and rising debt. 

'I’m cautious, though I’m not a bear.'

A 'bear' is an investor with a negative outlook on the stock market. They are expecting rapid declines in the near future. 

But Doll said that he expects a 10 percent market correction within the upcoming months - causing a significant slide in stock prices.  

The carefully optimistic investor favors financial stocks because 'they're cheap relative to their history' and during this part of the stock cycle, they are in 'better shape' than usual.

The stock market is currently in the 'markdown' or 'decline' stage of its cycle, according to All Season Funds. 

Doll emphasized that high earnings and predictability is more important to focus on than the specific sector someone is investing in.