NEW YORK (TheStreet) -- Consumer stocks such as Home Depot (HD) - Get Report and Nike (NKE) remain good buys in the wake of the Brexit vote last Thursday, which sent global markets tumbling, PNC executive VP Bill Stone said on CNBC's "Power Lunch" Monday.
"We aren't looking for, particularly out of the U.S. consumer, some sort of collapse and I think it's two companies with very strong dividend growth, with very strong balance sheets, so even if things go badly worse than we expect, they will survive to get to the other side," Stone argued, noting that these elements add downside protection.
Home Depot is a great stock to focus on because it is "really exposed" to the U.S. housing market, "not really to Britain," Stone continued.
"And I do think the U.S. housing market is a pocket of relevant strength here," he noted.
Although Stone does not foresee a financial crisis per say, investors still "have to worry" about further downside risk, especially during the rest of the summer.
"I think you have to worry about it. It's really hard to know how much because, I think what you've probably been talking about all day, is there's just so many unanswered questions," Stone explained.
The key is "nibbling here." Start buying on dips because Stone does not predict that the world is coming to an end.
"We had a nice stress test in the beginning of the year that said, hey, a financial market at much worse than this didn't lead us to a global recession, so hopefully this continues and we don't have another one again here," Stone added.
Following the majority of the U.S. market, shares of Home Depot are slipping by 1.61% to $124.36 on Monday afternoon.
Separately, TheStreet Ratings rated Home Depot as a "buy" with a score of A.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: HD