NEW YORK (TheStreet) -- The financial sector is slightly lower on the year, down 1.2%, but Ryan Kelley, portfolio manager for the Hennessy Large-Cap Financial Fund (HLFNX) - Get Report, says there is value to be found in the sector.
The stock has performed very well over the past several years, up 66% in the last 24 months, as Wells Fargo has become one of the country's largest banks.
The company is growing nicely in a low-growth environment and over time, earnings per share should continue to move higher, especially if the Federal Reserve increases interest rates.
If and when the U.S. economy returns to a more "normal" interest rate environment, Wells Fargo could boost its EPS by as much as 25%, Kelley explained. He then turned his attention to Visa (V) - Get Report, whose shares are up 21.5% in the past 12 months. However, concerns from other investors have risen regards its valuation.
The stock is now trading at 22 times its estimated earnings for the next 12 months.
Kelley says he likes the stock because of Visa's position in the growing global payment space.
Both companies should benefit from consumers having more disposable income and a stronger economy and labor market.
Finally, he has his attention on BankUnited (BKU) - Get Report. The company has a new management team that has found success in the New York region in the past. While BankUnited is based out of Florida, management is focused on growing its New York business as well.
Over the long term, that should pay out well, Kelley concluded.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.