Todd Hagermann, managing director at Sterne Agee, takes it one step further, saying in the same interview, "Banks are at the bottom of our list."
Sterne Agee downgraded JP Morgan Chase in December 2011, and continues to shy away from broker-dealer names.
"Right now we're sticking with quality baskets on the regional end of the spectrum. Their capital levels, are good, and they're operating in growth markets outside of depressed mortgage areas, " says Hagermann.
Hagerman likes: PNC Financial , Wells Fargo , BB&T, and US Bancorp.
Skeptics say the credit-card play is limited, given that debt is still growing faster than income levels in America.
It is a critique Fandetti concedes, but counters: "The undertone here is that with the improving economy, you'll see loan growth, and growth in consumer card receivables. We're looking at 2 percent, in line with GDP levels."
Additional News: Capital One Is Top Bank Stock Pick For 2012
Additional Views: Cards Sector May Outperform: Citi
CNBC Data Pages:
Todd Hagerman does not own stock in the aforementioned companies. His firm, Sterne Agee & Leach makes a market in the shares of BAC, BBT, C, FITB, JPM, and PNC. Donald Fandetti does not own the stock in specialty financial companies, but Citigroup has V, MA, COF, and DFS as investment banking clients.