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NEW YORK (TheStreet) — If you’re anticipating the Federal Reserve raising interest rates, and looking to make investments based on that happening, here are 10 diversified banks to buy.

Diversified banks are typically good investments when interest rates rise, because those banks have diversified sources of revenues: interest income from loans such as home equity lines that will throw off more income as the Fed raises interest rates; trading; and wealth management. That means that if rates go up, these banks could be in a good position to capitalize. 

So, what are the best diversified banks investors should be buying? Here are the top ten, according to TheStreet‘s proprietary ratings tool.

TheStreet Ratings projects a stock’s total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an SP 500 stock that TheStreet Ratings rated a buy yielded a 16.56% return in 2014, beating the SP 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a buy yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

Must Read: RBC Capital Markets Picks 6 Aerospace and Defense Stocks to Buy

Check out which stocks made the list. And when you’re done, be sure to read about which safe, A+ rated stocks you should buy now. Year-to-date returns are based on September 14, 2015 prices as of 9:47am.

GGAL data by YCharts
10. Grupo Financiero Galicia S.A. (GGAL – Get Report)

Rating: Buy, B
Market Cap: $2 billion
Year-to-date return: 27.5%

Grupo Financiero Galicia S.A. operates as a financial services holding company in Argentina. The company operates through Banking, Regional Credit Cards, CFA Personal Loans, and Insurance segments.

TheStreet Ratings team rates GRUPO FINANCIERO GALICIA SA as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

“We rate GRUPO FINANCIERO GALICIA SA (GGAL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company’s strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. “

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• GGAL’s revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 8.2%. Growth in the company’s revenue appears to have helped boost the earnings per share.
• Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company’s shares by a sharp 45.66% over the past year, a rise that has exceeded that of the SP 500 Index. Regarding the stock’s future course, although almost any stock can fall in a broad market decline, GGAL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
• GRUPO FINANCIERO GALICIA SA has improved earnings per share by 18.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GRUPO FINANCIERO GALICIA SA increased its bottom line by earning $3.02 versus $2.25 in the prior year. This year, the market expects an improvement in earnings ($3.03 versus $3.02).
• The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the SP 500 and exceeded that of the Commercial Banks industry average. The net income increased by 20.8% when compared to the same quarter one year prior, going from $82.77 million to $99.99 million.
• The gross profit margin for GRUPO FINANCIERO GALICIA SA is rather high; currently it is at 55.89%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 11.41% trails the industry average.
• You can view the full analysis from the report here: GGAL

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