Power Play: Betting on pickup in consumer spending

A promotional image for carpeting by Mohawk Industries
Source: Mohawk Industries

One of the big questions this year is when consumer spending will pick up. The jobless rate is coming down, personal income is rising and oil prices are off historic highs, but consumers are still not opening their wallets.

But Brian Peery, co-manager of the Morningstar 5-star rated Hennessy Cornerstone Mid Cap 30 fund, tells CNBC's "Power Lunch" on Tuesday he sees an improvement in the coming months and believes now is a good time to look at consumer discretionary stocks.

"The positives outweigh the negative and ultimately this should translate into stronger consumer spending, which in turn should be the driver of growth over the next few quarters," Peery said.

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Peery cites an uptick in consumer sentiment for his bullish view on consumer discretionary stocks.

"There are still some concerns from consumers that they may need more anticipatory savings, but purchases are starting to be driven by improving credit availability and low interest rates," Peery said.

One of the stocks Peery recommends is flooring manufacturer Mohawk Industries.

"We think there is a large pent up demand for their products…One of the areas we think the consumer will start to loosen up is in the home improvement side, as they look to increase the value of their home and enjoyment of it though remodeling," Peery said.

Shares of Mohawk Industries have surged 20 percent over the past year.