Using a proprietary quantitative system to review 5,000 stocks based on over 100 variables, Chuck Carlson has honed in on a few "standouts" -- citing Morgan Stanley (NYSE: MS), Lockheed Martin (NYSE: LMT), PepsicCo (NYSE: PEP) and Chevron (NYSE: CVX) as top blue chip bets for the current market environment.

The editor of The DRIP Investor explains, "Financials have had some rough sledding in recent months as a result of problems in the sub-prime market and the overall tight credit environment. Within that group, however, Morgan Stanley offers an excellent opportunity."

He notes that earnings in the latest quarter were impacted by problems in the credit markets, and the slowdown in mergers and acquisitions could adversely impact investment banking business going forward.

Nevertheless, he contends, the stock is discounting a lot of the problems in the industry. He says, "I remain a fan of these shares and recommend that investors take advantage of the price pullback to initiate positions."

Carlson adds, "One sector with several quality picks is industrials. Among the top stocks in the group, I especially like Lockheed Martin. I expect defense spending to remain at high levels, which is good news for the company's defense-related operations."