After valuation reset, banks are back in play: Street

Mike Mayo
Scott Mlyn | CNBC

Banking stocks received a flurry of upgrades Tuesday, as the market selloff in the past week reset valuations for the group, Wall Street analysts said.

Veteran bank analyst Mike Mayo of CLSA was among the bulls, upgrading shares of JPMorgan Chase to a "buy," while others like John McDonald from Bernstein and David George from Baird chimed in, issuing upgrades for their favorite stocks in the sector.

"Investors should use this pullback/sentiment shift to close short positions and selectively buy banks," said George in a note to clients Tuesday, pointing to valuations as one of the main catalysts for some of these names to move higher.

Among the top picks from the Street, here are the two financial stocks receiving the most love.