'Bottom being put in place' in S&P 500: Wall Street analyst

  • Investors should use the volatility in the stock market as a buying opportunity, at least in the short run, says Dan Wantrobski.
  • He predicts there will be a rally into the early part of the summer.

Investors should use the volatility in the stock market as a buying opportunity, at least in the short run, one Wall Street strategist told CNBC on Friday.

"We think there's a bottom being put in place here as far as the S&P is concerned," said Dan Wantrobski, director of research at Janney Montgomery Scott.

He predicts there will be a rally into the early part of the summer.

Stocks have been on a wild ride this year. Fears over a possible trade war with China and potential missile strikes on Syria have contributed to the rockiness.

Many investors are hoping earnings season will mean a return to fundamentals. So far, it has been off to a good start, with earnings growth so far totaling 26.8 percent for the first quarter, according to a note from Nick Raich, CEO of The Earnings Scout.

Pedestrians pass in front of the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images
Pedestrians pass in front of the New York Stock Exchange.

However, bank shares dragged equities lower on Friday, the final day of an otherwise strong week for stocks.

Citigroup, Wells Fargo and J.P. Morgan Chase all reported quarterly earnings and revenue that surpassed analyst expectations. However, bank investors were looking for more than just profit numbers, and the industry's leaders failed to deliver.

Wantrobski said stocks are "not ridiculously expensive" right now and sees the effects of multiple expansion for "years to come."

"Based on what we're seeing in terms of economic growth, demographic growth, we think the current multiple actually understates what's going on in the broader economy at this point," he said on "Power Lunch."

Christopher Zaccarelli, chief investment officer at Independent Advisor Alliance, also thinks investors need to look through the volatility.

While he thinks it is here to stay, he also is optimistic the market will move higher this year.

"As long as the fundamentals are good, the economy is good, corporate earnings are good, you want to take that longer view and stay in this market," he told "Power Lunch."

— CNBC's Fred Imbert, Jeff Cox and Brenda Hentschel contributed to this report.