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Pro Analysis

Top strategist Tom Lee says bank stock rally on Trump only halfway through

Wall Street bull NYSE
Michael Nagle | Bloomberg | Getty Images

The rally in bank stocks is only halfway through, according to top wall street strategist Tom Lee, who told clients Friday to be "steady buyers" of the shares.

"We see tail winds building for the sector — higher interest rates/inflation, deregulation, pro-growth policy — all add upside to EPS and multiples," wrote Lee, who's head of research at Fundstrat Global Advisors, in a note to clients Friday.

Bank stocks were underperforming the market until Friday when news broke that President Donald Trump will sign two executive orders aimed at reversing the "overarching" banking rules that were put in place after the financial crisis in 2008.