While the stock market has plowed to new highs, investors have still cast a very wary eye toward financials, especially the mega-cap banks. Who can blame them, with countless billion-dollar judgments, slowing brokerage trading revenues and a general dislike directed toward the sector by the average American?

Despite all the negatives, the sector has underperformed the overall market and could give investors a better risk-reward balance for the rest of 2014. A new research report from the banking analysts at Baird maintains that enthusiasm around improving loan growth should help offset potentially weaker net interest margin guidance. They see the best risk/reward in the money center banks, which seem under-owned relative to the larger regionals.

Here are the top mega-cap banks to own from Baird. All are rated Overweight.

Capital One Financial Corp. (NYSE: COF) has continued running its string of quirky commercials to grow its credit card business, and it trades at a low 11.7 times earnings. Capital One also offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. With more than 900 branches around the United States, the company has more than $206.9 billion in assets.

Capital One investors are paid a 1.4% dividend. Baird raises its price target on the stock from $81 to $90. The Thomson/First Call consensus price target is posted at $84.29. The stock closed Wednesday at $83.60 a share.

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JPMorgan Chase & Co. (NYSE: JPM) is one of the top names to buy at Baird. The company may be nearing the end of a very long stretch of losses and penalty pay-outs. Between mortgage settlements and trading gaffes, the company has taken a PR beating and has still held up well. The mega-cap bank is expected to benefit from commercial loan growth and an upturn in capital spending.

There may be some headline risk as CEO Jamie Dimon announced he has throat cancer, which could add in some near-term volatility. Investors are paid a respectable 2.8% dividend. The Baird price target is $67, and the consensus target is at $64.13. J.P. Morgan ended Wednesday’s trading at $56.97.

PNC Financial Services Group Inc. (NYSE: PNC) is listed as another top pick at Baird. CEO Bill Demchak recently said that for years PNC has been “planting seeds” to draw in new customers, and as a result it had “the opportunity to move these new clients toward the depth of product penetration we enjoy with our longer-term clients,” which ultimately represented “significant potential to generate new fee income.”

The East Coast powerhouse should see strong loan growth in all real estate areas as the economy improves there in the second half of the year. Investors are paid a 2.1% dividend. The Baird team has a $94 price target on the stock. The consensus target is set at $92.15. The stock closed Wednesday at $88.95.

Wells Fargo & Co. (NYSE: WFC) is another solid name on the Baird list that may really benefit if yields start moving higher. The yield curve typically steepens in an improving economy, which many on Wall Street currently anticipate. Wells Fargo is slowly but surely becoming one of the biggest mortgage lending companies in the United States, in addition to its normal banking and brokerage businesses. An increase in commercial real estate lending could really boost the banks bottom line.

Wells Fargo also remains a top Warren Buffett holding. Investors are paid a solid 2.6% dividend. The Baird price target for the stock is posted at $55, and the consensus target is $52.71. Wells Fargo closed Wednesday at $52.66 a share.

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With a very overbought and pricey market, and second-quarter earnings right around the corner, it is difficult to commit big chunks of capital now. With the big banks underperforming the overall market, a long-term account may do well to nibble at these top names.

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