Conversely, Kilburg is adding to positions that have lagged the market, such as industrial and health-care stocks.
"Those are three names that I believe are blue chip, essential names to the U.S. economy," he said.
UnitedHealth and other health-care stocks are also trading at a discount, Kilburg said, citing Johnson & Johnson as a potential winner.
Buy cyclical names Bailey, formerly a health-care analyst at Legg Mason and Stifel Financial before joining FBB in 2015, expects a hotter-than-forecast inflation report on Wednesday would take stocks lower.
The Johns Hopkins MBA also sees the larger, diversified banks as attractive in a climate of higher inflation and interest rates.
Persons:
Jeff Kilburg, Kilburg, Mike Bailey, Bailey, payrolls, Lockheed Martin, Johnson, Legg Mason, Berkshire Hathaway, Johns Hopkins, UnitedHealth
Organizations:
KKM, FBB Capital Partners, Meta, Nvidia, Lockheed, Stifel, FBB, Treasury, Berkshire, Union Pacific, Old Dominion Freight
Locations:
U.S, McLennan, Progressive, Chevron