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Despite this move, Hennessy Cornerstone Mid Cap 30 Fund Portfolio Manager Brian Peery tells CNBC's "Power Lunch" on Wednesday he remains cautious. "We believe that the market at the end of the year should look better than it does right now, but there may be some more pain before that time comes," Peery said.
He likes stocks with a market cap of between $1 billion and $10 billion. A top name for Peery is specialty retailer Express. "We think Express is making the right move, especially in consideration of their target audience, to focus more on e-commerce and outlets, rather than the traditional retail store," Peery said.
He believes the stock is trading are very reasonable levels. "Sales, earnings and margins are all trending higher, and we think the stock should follow," Peery said.
Express is higher during trading, but is down 15 percent year-to-date.