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Betting financials is a value play: Investors

The financial sector is one of the worst performing sectors in the S&P 500 for the last year, yet these investors see value in it.

"Oil prices appeared to have found some kind of a bottom; have rallied. The data out of China has been encouraging, and expectations for a Fed rate hike have been pushed back a little bit," Joe Tanious, a strategist at Bessemer Trust Investment told "Power Lunch" on Tuesday.

He said during the CNBC interview that the market bears value "opportunities, but it really comes down to being selective and finding the right securities to invest in."

Tanious said that he would hunt for value in the sectors that stand to benefit from an improved consumer balance sheet.

"You think about consumer discretionary stocks, you think about technology stocks; those that have a bet towards a healthy consumer," he said. "And of course we can't forget financials ... to the extent that the Fed Reserve raises interest rates this year ... I suspect you're going to find value out of those stocks."

Energy and materials traded more than 1.5 percent higher as the top S&P sectors in Tuesday's afternoon trade, followed by financials. Still, the financials sector closed Monday's session as one of the two negative sectors in the S&P year-to-date, down nearly 2 percent.

Similar to Tanious, John Buckingham of AFAM told CNBC that he also sees opportunity in the financials sector. Nonetheless, he noted that despite the recent stock market rally, some stocks have dropped from their highs, so investors should also focus on individual stock performance.

The chief investment officer's firm holds Capital One and Bank of America. He also suggests that market watchers invest in Prudential Financial in the insurance space.

"It's always a market of stocks and not just a stock market," Buckingham told "Power Lunch."

— CNBC's Evelyn Cheng contributed to this report.