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Power Play: Contrarian call on energy

Electricity electric grid
Hugociss | Moment | Getty Images

The energy sector is down on Wednesday, as oil prices continue to drop, and is off 20 percent year-to-date.

Despite this slide, Jeremy Zirin, chief U.S. equity strategist at UBS Wealth Management, tells CNBC's "Power Lunch" his firm is positive on energy.

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"As a contrarian call, we recently upgraded energy, largely on valuation," Zirin said.

He also believes oil prices may be stabilizing.

"The sector has massively underperformed, relative valuations are at 40-year lows, and oil market fundamentals should be bottoming over the next 3-6 months," Zirin said.

West Texas Intermediate and Brent crude are down two percent during trading.