Certain segments of the retail sector still have room for growth, TheStreet CIO Stephanie Link said Thursday.
"I'm not that worried about the consumer because I do think that they have benefited from higher home prices, a little bit better wealth effect from the market," she said. "And also they're very selective."
On CNBC's "Fast Money," Link saw a positive sign in the fact that consumers were spending.
(Read more: Will consumers kill the stock rally?)
"They're at least still shopping," she said. "They're just shopping at certain places, like in the durable goods side of things. With wage growth actually flat, they have only a finite amount money to spend, but it's nice to see that at least they're going to the Lowe's and the Home Depots and the TJXs, and they're looking for value. So, I think there are areas in retail where you can invest. I would avoid some of the apparel companies, for certain."
Link also noted strength in a name such as Bed Bath & Beyond, which has seen positive same-store sales growth. That, she added, provided evidence that the consumer was strong.
