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This week's outperformance for bank stocks could continue as the economy recovers, and it's time for investors to buy in, Wells Fargo said in a note to clients Wednesday.
The KBW Bank Index popped more than 13% on Monday after Pfizer announced that preliminary results of a phase-three trial showed that its Covid-19 vaccine candidate was more than 90% effective. Bond yields have also risen, with the 10-year Treasury note threatening to break above 1% for the first time since March.
Even after that jump, bank valuations are at abnormally low levels and the stocks have upside, Wells Fargo said.