NEW YORK (TheStreet) -- The Dow Jones Industrial average closed above the 19,000 mark for the first time in history today, with the Nasdaq and S&P 500 also ending the day up. Matrix Asset Advisors CIO David Katz joined CNBC's "Closing Bell" on Tuesday afternoon to give advice to investors during this rally. 

"Well you don't want to just chase the market, but we do think there are a lot of opportunities in individual stocks," he said. "The markets are at all-time highs, but a lot of stocks are well below their highs." 

The firm is warming up to drug stocks "in a fairly meaningful way," he noted. AbbVie  (ABBV) is around $12 off of its high, has a great yield and is at 12x earnings, while Zimmer (ZBH) has "very favorable" outlook and is at a great price. 

While financial stocks have been rallying since Election Day, President-elect Donald Trump is expected to rollback regulation in the sector, the rally isn't over, Katz predicted. While investors should avoid chasing these stocks, they should buy them if there's any pullback because the "prospects are very good" with an expected rate hike from the Fed in December, potentially less regulation and more positive sentiment. 

"This group is vastly under-invested in by mutual funds and hedge funds. We think there's a mad dash to get in. That should drive them higher," he said. 

JPMorgan (JPM) and Wells Fargo (WFC) are both good stock options in the sector, which is set to have a good year in 2017, Katz said. 

(AbbVie is held in David Peltier's Dividend Stock Advisor portfolio. See all of his holdings with a free trial.)

More from Markets

AMD Rises Above the Competition; Loan Losses Mount for Big Banks -- ICYMI

AMD Rises Above the Competition; Loan Losses Mount for Big Banks -- ICYMI

McKesson Internal Review Clears Senior Management of Wrongdoing on Opioids

McKesson Internal Review Clears Senior Management of Wrongdoing on Opioids

Starbucks Surprises Wall Street With U.S. Sales Up a Paltry 2%

Starbucks Surprises Wall Street With U.S. Sales Up a Paltry 2%

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2