5 Stocks “About To Pop” According To Jim Cramer: In Retrospect

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 100

6-Month Performance as of March 30 (Relative to SPY): 9.39%

Cramer mentioned JPMorgan Chase & Co. (NYSE:JPM) among his top picks from the banking sector and particularly liked the company’s financial condition at the time. According to Cramer JPMorgan Chase & Co. (NYSE:JPM) was “about to pop” and, as of March 30, the stock has outperformed the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) by 9.39% over the past 6 months.

JPMorgan Chase & Co. (NYSE:JPM) was held by 100 hedge funds at the end of Q4 2022. These funds held positions worth $5.17 billion in the company. As of December 31, Greenhaven Associates is the largest stockholder in the company and has a stake worth $643 million.

Here is what Vltava Fund had to say about JPMorgan Chase & Co. (NYSE:JPM) in its third-quarter 2022 investor letter:

“We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.

JP Morgan’s quality and strength first became fully evident in 2008 under the leadership of its CEO Jamie Dimon. Not only did JP Morgan help to stabilize the market by taking over the failing Bear Stearns in the spring of that year, but throughout the Great Financial Crisis it was the only big US bank that did not require government assistance and it was highly profitable even in the difficult year of 2008.

A well-functioning and efficient bank can be a very good long-term investment, because the interest compounding effect works well here. JPM’s return on equity (ROE) is well into the double digits and this puts it in a good position to continue producing better long-term returns than does the market. JPM has been very profitable even during years when interest rates were close to zero. The current – and perhaps not temporary – return to somewhat more normal, higher interest rates should have a significantly positive impact on the bank’s interest income and overall profitability.”

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