Jim Cramer Calls JPMorgan and Bank Stocks Still Cheap
Cramer says major banks like JPM remain undervalued. Here's why traders are paying attention right now.
Jim Cramer is making the bull case for bank stocks, and JPMorgan Chase is leading the charge. The CNBC host recently argued that big financial names are still trading at attractive valuations — in other words, they haven't gotten expensive yet, even after a strong run. That's a signal worth noting if you're looking for value in a market that feels stretched almost everywhere else.
The call centers on a straightforward thesis: banks earn more when rates stay elevated, and the Federal Reserve isn't in any rush to slash borrowing costs back to zero. Higher-for-longer rates mean fatter net interest margins, and that flows straight to the bottom line for institutions like JPMorgan. Cramer's point is that the market hasn't fully priced that in yet.
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For retail traders, the tradeable angle here is pretty clear. If the big money hasn't crowded into financials yet — and Cramer's "still inexpensive" framing suggests it hasn't — there could be room to run before consensus catches up. JPM is the obvious flagship name, but the thesis extends across the large-cap bank sector broadly.
Of course, Cramer calls aren't buy orders. Macro risk, credit quality deterioration, and any surprise Fed pivot could flip the narrative fast. But as a sector-rotation idea — rotating into financials from frothy tech or defensive names — the logic holds up. Cheap, rate-tailwind-supported, and not yet crowded is a combination traders look for.
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