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Buy financials on their price dip: Expert

Financial stocks in the S&P 500 have taken a beating this year, performing the worst out of 10 S&P macro sectors. But the drop provides a window to snatch up financial stocks at cheap prices, an analyst said on Thursday.

"We'd use this selloff as an opportunity to really pick up a number of highest-quality businesses at great prices," David Katz, president and chief investment officer of Matrix Asset Advisors, said in an interview on CNBC's "Street Signs."

David Katx, CIO of Matrix Asset Advisors.
Adam Jeffery | CNBC
David Katx, CIO of Matrix Asset Advisors.

The sector has shed about 3.5 percent in 2015. Katz believes the Federal Reserve will raise interest rates this year, which bodes well for banks.

Read MoreCentral bank surprises: Who's next?

He also argued that many banks boast strong fundamentals, despite their price drops. Matrix has kept an eye on big banks like JPMorgan Chase and Wells Fargo. Katz also cited Charles Schwab and Metlife as plays on expectations for rising interest rates.

"We think you're getting better fundamentals and you're getting great stock prices," Katz said.

Another struggling sector may not emerge from the woods any time soon, however, an expert said on Thursday. Crude oil, which has seen a volatile stretch in recent trading sessions, shows signs of a short-term drop, said Kyle Cooper, director of research at IAF Advisors, told "Street Signs."

Read MoreOil expert: This is a 'dead cat bounce'

WTI crude jumped about 4 percent on Thursday to settle above $50 a barrel. Cooper believes contango, where the oil futures prices is higher than the spot price, will drive hoarding of oil supplies and and increase inventories.

More likely than not, oil will fall to new lows, Cooper argued.