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3 bank stocks to watch ahead of Fed meeting

While the Fed hiking interest rates could have a big effect on financial stocks, shares of some banks are poised to rally regardless of the central bank's decision on Thursday, CNBC "Fast Money" traders said.

The Financial Select Sector SPDR Fund rose more than 1 percent Tuesday, but has fallen more than 5 percent this year, trailing the S&P 500's losses of about 4 percent. Trader Karen Finerman said she sees opportunity in that weakness.

"There's a lot of value there," she said.

Bank of America
Scott Mlyn | CNBC

Finerman pointed to Bank of America and JPMorgan Chase as undervalued financial names. She owns both stocks.

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Trader Steve Grasso agreed that Bank of America looks attractive, down more than 8 percent for the year. Grasso, who owns the stock, contended it did not need an interest rate increase to move higher.

Traders Pete Najarian and Guy Adami added that Goldman Sachs could mount a rally moving forward. Both traders noted that, due to stock market volatility in recent weeks, the bank's trading unit likely saw a big boost in volume.

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Disclosures:

Pete Najarian

Long AMAT, BAC, BMY, BP, CSX, DISCA, DKS, FOXA, GE, KKR, KO, LLY, MRK, PEP, PFE, he is long calls AA, AAL, ABX, ALK, BEE, BUP, CRM, CSX, CVC, DAL, ETFC, HIG, HIMX, INTC, LM, MPEL, PFE, QCOM, VLO, XLF, XOM, ZIOP, he is long puts DISH, FCX.

Steve Grasso

Steve is long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MU, PFE, PHM, T, TWTR, GDX, firm is long GLD, IBM His kids own EFA, EFG, EWJ, IJR, SPY.

Karen Finerman

Karen is long BAC, C, FINL, FL, GOOG, GOOGL, IBB, JPM, KORS, KORS call spreads, M, SUNE, SUNE puts, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, FBT, FINL, FL, GOOG, GOOGL, GPS, IBB, JPM, KORS, KORs calls, M, M calls, SUNE, SUNE calls, URI, URI long puts, XBI, KORS call spreads, M call spreads, SUNE calls, SUNE puts, her firm is short IWM, SPY, MDY, USO, Karen Finerman is on the board of GrafTech International.

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.