The Cato Corporation (CATO) - Get Report , down five percent so far in 2016, is a Charlotte, N.C.-based specialty retailer operating almost 1,400 stores in 32 states, mostly in strip malls. Scruggs is bullish on the name despite the tenuous environment in the retail sector and especially in the nation's malls. They offer stylish clothes at a price point that is comparable to a Walmart (WMT) - Get Report ,' said Scruggs. Finally, Scruggs is a fan of Hilltop Holdings (HTH) - Get Report , down one percent year-to-date, saying the Dallas, Texas-based lender is not as correlated to the price of oil as many investors may believe. 'They claim that about four percent of the balance sheet has oil exposure and it is conservatively underwritten,' said Scruggs.