In today's edition of "Talking Stocks," analysts Andrew Tonner and Anand Chokkavelu look at the good news for bank profits today: a growing interest-rate spread.

The New York Times reports that the interest-rate spread has doubled from 2007 to today. This is good news for banks' profits and creates an environment for them to be more conservative while also keeping more profits. It could explain why you see companies such as Wells Fargo placing big bets or mortgages right now. Prudently managed banks such as Wells could see a nice upside surprise in the next few quarters, and at today's prices, that leaves a lot of room on the upside for the long-term investor.

With so many of the big finance firms getting bad press these days, you may be inclined to stay away from the sector entirely, but that could be a huge mistake. In fact, some of the best opportunities over the next few years can be found there, including one small, under-the-radar bank. It's been called one of The Stocks Only the Smartest Investors Are Buying. You can learn about it, and more, in our exclusive free report. Just click here to keep reading

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.