The financial stocks surged alongside the market as a whole on Thursday, with a 2.6 percent rise that saw every single stock in the sector finish in the green. And according to S&P Capital IQ equity chief investment officer Erin Gibbs, one subset of the financials—the bank stocks—is among the most attractive areas for investment now.
"They're looking a little oversold, and have very good growth [potential] into the next year," Gibbs said Thursday on CNBC's "Power Lunch."
Analysts are expecting the banks to report earnings growth of 15 percent in 2016, versus just 8 percent for the financials, according to S&P. Meanwhile, the average analyst target price for bank stocks implies 18 percent of upside.
Bank stocks are "really one of the sweet spots," Gibbs said.