Financials stocks are set to take on a leadership role across the markets, according to banking analyst Mike Mayo of Wells Fargo Securities. 

"We think financials stocks, at least, the banks themselves, should become more of a leader in the market," he said in an interview with TheStreet. "The fundamentals of banks are very strong."

He said bank balance sheets are the strongest they've been "in a generation."

JPMorgan Chase (JPM) , Citigroup (C) and Wells Fargo (WFC) release first quarter earnings on Friday. 

Watch our entire interview with Mike Mayo on YouTube:

More from Video

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Trump Threatens More Tariffs and 4 Other Stories to Watch Tuesday Morning

Trump Threatens More Tariffs and 4 Other Stories to Watch Tuesday Morning

Jim Cramer's Investing Rule 13: No Woulda, Shoulda, Couldas

Jim Cramer's Investing Rule 13: No Woulda, Shoulda, Couldas

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes