Jim Cramer Talked About These 16 Stocks

5. Citigroup Inc. (NYSE:C)

Cramer described the relationship between investment banks like Citigroup Inc. (NYSE:C) and the Biden administration as being like oil and water. Here’s what he had to say:

“The banks, especially investment banks, these stocks had gigantic moves. Moves that would normally take weeks or even months to occur and instead they happened in a handful of hours. The banks have been pushed down for ages because the Democrats have tough, relentless regulators who love to go after the industry. Hey, you may hate the industry, you might want that. You may love it and say… enough. The regulators have crushed their earnings power and their dividend giving and their buyback ability. That, in turn, really obliterated the price-earnings multiple of the cheapest stocks in the entire market. Now though the banks could be unfettered, they might be able to merge again, reward investors with much higher dividends, and buyback even more stock.”

Cramer explained that with the new administration in place, investment banks will have the opportunity to advise on a greater number of mergers. He said there will likely be an increase in merger activity, as regulators are expected to take a more relaxed approach. He gave his blessing to buy these stocks and called the group cheap.

Citigroup (NYSE:C) is a prominent global financial services company offering a range of financial products and services, including cash management, trading, investment banking, and more. In the third quarter, despite the overall softness in the IPO market, the company saw an increase in its investment banking fees, which rose by 44%.

This growth was primarily driven by a surge in investment-grade debt issuance, as many of its clients accelerated their activities ahead of the U.S. election. During the quarter, Citigroup (NYSE:C) returned a total of $2.1 billion to its common shareholders, which included both dividends and share repurchases.