Why Microsoft, ServiceNow And Coca-Cola Are Among This Investor's Top Stock Picks

The Federal Reserve raised rates by 50 basis points on Wednesday, marking the first rate hike of at least half a percentage point in more than 20 years. Stocks surged following the announcement, but have pulled back significantly on Thursday.

Laffer Tengler Investments' Nancy Tengler sees opportunity amid the sell-off.

"I do think that this will sort itself out," Tengler said Thursday on CNBC's "The Exchange."

Regardless of what happens with the Fed, she sees opportunity in a handful of names that reported strong earnings in the first quarter.

"We're still seeing growth at the earnings level. I was astonished at how good earnings were this last quarter," Tengler emphasized.

See Also: If You Invested $100 In SPY, Apple Or Amazon When Fed Last Hiked Rate By 0.5%, Here's How Much You'd Have Now

Tengler's Top Stocks: She likes Microsoft Corp MSFT and ServiceNow Inc NOW in the technology space.

"Both of whom are sort of part of the solution to inflation because of the improvements in productivity they produce by using their products," Tengler said.

Both companies reported strong quarterly results and issued guidance for continued strength in their businesses, she added.

She also likes Steel Dynamics Inc STLD, which had an "amazing quarter" and raised its dividend by 20%, she noted.

Other top picks from the Laffer Tengler CEO include Public Storage PSA and Coca-Cola Co KO.

"There's a lot of good news underneath the market ... it's the more speculative names that had a difficult time this quarter," Tengler said.

SPY Price Action: The SPDR S&P 500 SPY was down 3.57% at $413.75 at press time, according to data from Benzinga Pro.

Photo: courtesy of Microsoft.