We recently compiled a list of the Jim Cramer Talked About These 11 Stocks Recently.In this article, we are going to take a look at where JPMorgan Chase & Co. (NYSE:JPM) stands against the other stocks Jim Cramer recently talked about.
On Thursday, Jim Cramer, host of Mad Money, discussed the current state of the market following the election, noting that it has been marked by extreme volatility, with some sectors experiencing massive gains while others have faced significant losses. Cramer observed a recurring pattern in the market:
“When it's loved in this market, it's really loved, but when it's hated, I mean just forget about it. That's been the dynamic ever since the election.”
Cramer identified certain industries that have seen notable growth, explaining that these sectors have thrived for specific reasons. However, he cautioned that investors should be wary of jumping in too quickly, as these stocks need time to cool off before they become attractive again. In particular, he mentioned how companies with subscription-based models have been seeing a lot of attention, largely because of their steady revenue streams.
Another sector Cramer highlighted as being in the midst of a strong rally is enterprise software. He explained that companies in this space, particularly those providing essential products to large corporations, have been soaring.
While some sectors are riding high, Cramer also pointed to two areas that are currently undervalued but could see a rebound: pharmaceuticals and semiconductors. He speculated that the pharmaceutical sector has been dragged down in part due to concerns over Robert F. Kennedy Jr.'s controversial appointment as the head of the Department of Health and Human Services. However, Cramer suggested that these concerns may already be priced into the stocks.
Similarly, Cramer noted that semiconductor stocks have struggled. He said that the hatred comes from doubts surrounding the adoption of artificial intelligence-powered PCs. In his closing remarks, Cramer stressed that while there are plenty of stocks that are currently over-loved, many of them genuinely deserve the attention they’re receiving, but not necessarily at their current inflated prices.
As for sectors that seem to be in a perpetual decline, Cramer said he would be interested in buying them, but only after seeing signs that they’ve stopped falling. He added that any potential rebound will depend on greater clarity from President-elect Trump, who he believes could have a significant impact on the market, particularly with his potential to cause turbulence for many stocks.
“We need to see the floor of the abyss, unless, of course, we’re bouncing off it already. And for the overly loved, don't look for Trump for support. He can surprise you with what concerns him. Do not get too cocky. Do not get too smug. It will hurt you for certain.”
Our Methodology
For this article, we compiled a list of 11 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 14 and listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A group of business people discussing plans around a boardroom table adorned with a financial services company logo.
Cramer talked about how banking stocks like JPMorgan Chase & Co. (NYSE:JPM) gained rapidly after the election and called it justified.
“Then there are the banks. We've had a bull market in banks for most of the year, but they really caught fire after Trump won the election. I think this move’s actually justified because bank regulators won't be as tough and unforgiving as the Biden bunch and we'll have many more mergers… With the changing of the guard at these agencies and among the bank examiners, the financials are simply worth more under Trump than they were under Biden, no kidding. Yet, even after this monster move, you know what? Their stocks are still cheap… JPMorgan's had a similar move and it boasts a similarly low price-to-earnings multiple, even though it could have explosive earnings growth next year if the regulators just ease up, resulting in more IPOs and more mergers, and I think that's gonna happen.”
JPMorgan Chase (NYSE:JPM) is one of the largest and most prominent financial institutions in the world, offering a wide range of services to consumers, businesses, and institutional clients. On November 14, Wells Fargo raised the price target on the company stock to $270 from $240 and maintained an Overweight rating.
This adjustment comes as part of a broader analysis of large-cap banks. According to Wells Fargo, the anticipated outcomes of the upcoming U.S. elections could lead to a significant regulatory shift, with the potential to reshape the financial sector over the next 15 years. Additionally, the firm cited expectations of higher EPS, driven by greater flexibility for banks to deploy and return capital and an anticipated resurgence in bank mergers.
Overall JPM ranks 8th on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of JPM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
