"The financials are one of our favorite sectors for the summer," said Colas. "Financials benefit from a steepening yield curve, and it's very clear that the longer end of the curve is going to move higher as the bond market gets ready for an eventual Fed liftoff."
Yields on the benchmark 10-Year Treasury stand at 2.31%, compared to the 2.12% yields seen near the start of the year. Higher interest rates would boost margins for banks.
Financial stocks in the S&P 500 -- a category that includes such major names as Bank of America (BAC), JPMorgan Chase (JPM) and Citigroup (C) -- have returned about 1.8% since the beginning of the month. Those three banks, however, traded lower on Wednesday, following the Federal Reserve's decision to keep rates unchanged, according to the statement from its June meeting.
"Waiting too long to begin normalization can risk overshooting our inflation objective," Fed Chair Janet Yellen said in a press conference following the release of the Fed's statement. "Beginning too early could risk derailing our recovery."
Higher rates also increase borrowing costs for consumers, which may price them out of the housing market. For that reason, Colas isn't a fan of the homebuilder sector. "You are going to see more expensive mortgages, and it's a time to be cautious on that group."