Value investor David Katz told CNBC on Wednesday he thinks the pullback in financials has created a buying opportunity, suggesting the sector still has plenty of tailwinds from the expanding U.S. economy.
Financials are the third-best performers in the S&P 500 this year, trailing only energy and real estate. While they are up about 23% year to date, financials have fallen more than 4% in the past month as Wall Street rotated back into growth.
For comparison, the iShares S&P 500 Growth ETF is up over 5% in the past month.
Katz, in an interview on "The Exchange," said he believes the renewed strength in growth stocks is a bit of an "outlier."
"Coming out of recessions, typically value significantly outpaces growth. Since last September, value has done exceptionally well versus growth. We still think we're in the early innings of that, so you're getting a breather now," said Katz, president and chief investment officer of Matrix Asset Advisors. "We think, on a six- to 12-month basis, that value still has some very good upside opportunities."
