Investors have been reallocating assets since Trump's surprising victory, with money pouring into sectors like financials and industrials. The Financial Select Sector SPDR (XLF) is up about 11 percent in the last five days of trading.
Jeffery Harte, principal at Sandler O'Neill, told "Closing Bell" circumstances have now improved for banks, brokers and business in general.
He believes there will be progress in the yield curve steepening, possibly more economic growth and the easing of some regulatory burden. The question is how much of that is already priced in and whether it's too late to be getting in, he said.
"This isn't going to go up in a linear line. It's going to move around. So I'd be hesitant to say you need to run out and buy tomorrow," Harte noted.
That said, when looking at the possibilities that will occur during the Trump administration, he believes the outlook is positive.
"If you figure the tax rate goes down, and regulation gets dialed back a little bit, and the yield curve steepens a little bit, we start looking at bank stocks as growing earnings — you can pencil in 30, 40 percent earnings growth," said Harte.
So while he's a little cautious right now because of the recent move higher, he said he thinks bank stocks can do well in the next year.