Why This Investor Just Bought More General Electric And A Stock Which Is Up Nearly 30% For The Year

Stephanie Link, chief investment strategist and portfolio manager at Hightower Advisors, recently added to her positions in General Electric Co GE and Emerson Electric Co. EMR, she shared Tuesday on CNBC's "Fast Money Halftime Report."

General Electric and Emerson Electric are beneficiaries of the infrastructure bill, but the pair of energy stocks are also restructuring stories, Link told CNBC.

General Electric has engaged in asset sales and M&A to help turn the stock around over the last two years, she said. 

The most impressive number in the company's recent earnings report was its free cash flow, Link noted. General Electric beat by $500 million and issued guidance of $5 billion for the year, she said, adding that she thinks the company can beat its guidance. 

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Automated solutions is about 66% of the total revenue for Emerson Electric, but "this is a hidden energy play," she told CNBC.

Emerson Electric recently appointed a new CEO that is focused on cutting costs and organic growth, Link said. She expects margins to improve as the company cuts costs, she added. 

Link told CNBC that she sees plenty of room for both stocks to trade higher moving forward. 

Price Action: At last check Tuesday, General Electric was up 2.12% at $105.91 and Emerson Electric was up 1.91% at $103.09.

Photo: Courtesy of General Electric.