Trader Boris Schlossberg says it's about time for bank stocks, especially JPMorgan, to rise.
The stock is the "Apple" of banking, he said on CNBC's ""I actually love JPMorgan," he added. It "is not the best in everything, but it does everything incredibly well from the consumer side and the corporate side."
JPMorgan is down 27% this year as bank stocks have struggled to climb back from the coronavirus sell-off. Financials are the second worst performing sector this year, but Schlossberg thinks it's about time for bank stocks to rise. "The banks are surely due for a bounce. Simply because they've just underperformed the broader market by so much that they are really relatively cheap to the rest of the market. Their underlying business is quite good," he said.ETF, which tracks bank performance in the S&P 500, seemed to fight off the broader sell-off Thursday before ultimately closing slightly higher.
"It really comes down to rates. The banks become truly a strong buy if we did an up move in the 10-year [Treasury] closer to 1%, but we don't even have to do that. As long as rates stay stationary here, and just moderately move up," he said."This is one of the best-looking companies inside the sector," Johnson said during the same "Trading Nation" segment.
"We need to see interest rates up, and we also need to see the dollar perhaps weaken a little bit for this trade out of growth toward more of these value-type stocks to ultimately play out," he said.
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