NEW YORK (TheStreet) -- Lower oil prices put "real money in the pockets of the people that are most likely to spend that money," the lower and middle classes, Steve Dudash, president of IHT Wealth Management, told TheStreet TV's Gregg Greenberg.
And what better company to reap the benefits of this increased spending power than Wal-Mart (WMT) , one of Dudash's top picks. Because of its stronger customers, Wal-Mart will likely report better-than-expected results than were previously anticipated, he said.
Dudash also likes financial stocks, particularly Wells Fargo (WFC) . He said the bank is likely to see an increase in its Wells Fargo Advisors business as people from Bank of America's (BAC) Merrill Lynch leave for Wells after the expiration of their retention bonuses.
Wells Fargo could take market share for the next 12 to 18 months, which doesn't seem to be priced into the stock, he said.
JPMorgan Chase (JPM) is another undervalued bank stock. The company should gain market share in the banking business, fueling a stronger recovery in its stock price than many of its peers. The company is undervalued because of its previous problems such as the London Whale scandal. However, he saees that changing and shares rising.
-- Written by Bret Kenwell