Power Play: Small-cap stocks for uncertain times

 Pouring concrete at construction site
Lester Lefkowitz | Getty Images

Stocks are rallying on Tuesday, pushing the S&P 500 and Nasdaq into positive territory for the month of May.

Despite the move, Eric Marshall, co-portfolio manager of the Morningstar 4-star rated Hodges Small Cap Fund, tells CNBC's "Power Lunch" he expects the market to remain choppy as uncertainty looms over interest rates, consumer spending and the political landscape.

In this environment, he sees opportunities in small-cap stocks. "We believe the less efficient areas of the market, such as small-cap stocks, have become even more inefficient and offer greater rewards for individual stock picking," Marshall said.

He is looking at non-energy stocks impacted by oil prices, such as La Quinta Holdings.

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"We are finding attractive valuations in non-energy names that have been oversold in reaction to lower oil prices over the past year; examples include home builders that have been unfairly punished due to their exposure to Texas, several of the regional banks, hotel operators, and other business that have indirect exposure to energy," Marshall said.

Infrastructure spending is another key play for Marshall.

"We see attractive opportunities to invest in several for the material and construction related companies that will benefit from the new highway bill, as well as pent-up demand for other infrastructure projects," Marshall said.

Two of his favorite names in this space are U.S. Concrete and Martin Marietta.

La Quinta is flat during trading, but U.S. Concrete and Martin Marietta are up more than one percent.