"You really see it in the relative ratio. JPMorgan has been the underperformer since last November. The market has been rewarding the beta on Wells Fargo. I think JP now offers rotation potential, a little bit stronger position coming back into focus," Wald said.
JPMorgan has rallied 24% in 2021, better than the rest of the market but below some of its peers. Wells Fargo, by comparison, has risen 46%.While some banks may be on better footing, the entire group should benefit from a solid earnings season, according to Michael Bapis, managing director of Vios Advisors at Rockefeller Capital.
"Many of the key components and fundamentals are lining up in the bank's favor," Bapis said during the same interview. "On the top six banks, the deposits are up roughly 30% since the start of 2020, you're seeing the dividend yields up roughly 40% on the banks, and they're very well capitalized."