Jim Cramer Talked About These 16 Stocks

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

Talking about banks like JPMorgan Chase & Co. (NYSE:JPM), Cramer commented on how the sector did during Biden’s administration and how it could fare under Trump.

“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.

More importantly, the investment banks can advise on many more mergers and there will be many more mergers because the regulators will look the other way and we’ll get more IPOs too. It’s hard to convey how much antipathy there was between bankers and the Biden administration, they were oil and water. That’s it. The banks have now run a lot. You got my blessing though, to buy them… For the Charitable Trust, we actually sold some of our shares. These became some of our largest positions ’cause they went up so much… Overall, the group is still cheap. To go parabolic, it will come down, you can buy.”

JPMorgan Chase (NYSE:JPM) is a global financial services firm offering a wide range of services, including deposits, loans, investment banking, and wealth management to consumers, businesses, and institutional clients. On October 7, Baird downgraded the stock to Underperform from Neutral with an unchanged price target of $200.

The firm expressed concerns about the current valuation of JPMorgan Chase (NYSE:JPM) shares, suggesting that the stock’s recent price levels offer a poor risk/reward ratio. Despite the optimism surrounding the potential for a more favorable regulatory environment and pro-growth policies under a potential Trump administration, Baird believes that the stock price is already factoring in these expectations, which may limit future upside.

The firm noted that while market sentiment remains positive, the high price of the stock, coupled with what it sees as already inflated expectations, warrants caution. Baird’s analysis advises investors to consider taking profits at current levels, given what it perceives as limited potential for further growth in the near term.