The recent panic within the U.S. financial sector amid an uncertain global economic outlook has brought the price of bank stocks to attractive levels, one investment expert says.

In this uncertain environment, both U.S. and Canadian bank stocks are being undervalued by investors, Gordon Reid, president of Goodreid Investment Counsel, stated in an interview on Tuesday.

“I think banks are priced as if we’re going to have a fairly deep recession,” he added.

Should a recession happen, he believes it will impact Wall Street more than small businesses, and position bank stocks to rise once the economy comes out on the other side.

Reid also pointed to the recent U.S. banking collapse as a prime opportunity for larger banks to grab regional bank marketshare. This can be seen most recently in JPMorgan Chase & Co.’s agreement to acquire First Republic Bank following the lender’s failure.   

He recommended investors buy shares of JPMorgan and Bank of America Corp. in this climate. In Canada, he likes Royal Bank of Canada, TD Bank and Bank of Nova Scotia.

In addition to the banking sector, Reid also sees an opportunity in one U.S. health-care stock, CVS Health Corp.

 “A lot of people think of CVS as a drug store, it is of course a drug store, it has about 10,000 locations in the United States -- but it’s also a health-care provider,” he said.

Reid pointed to the company’s large vertical integration through America’s health-care system and its recent string of acquisitions as tailwinds for the company’s future growth that investors seem to be overlooking.  

“(CVS) is trading very inexpensively -- at about nine times earnings,” he said.