Jim Cramer - Mad MoneyJP Morgan Chase & CoJPMBUYJul 11, 2022

It is a leader in the sector - best managed, best balance sheet and is outspending their competitors in technology by a wide margin. It made some good acquisitions with regional banks being in difficulty. The U.S. financial ETF - XLF made new highs in the bear market 1 1/2 years ago.

Best bank on Wall Street. Only US bank in portfolio. Excellent management team that consistently outperforms. Recent earnings reports very strong. Excellent balance sheet. Ability to generate earnings unparalleled within sector. 

Expectations were so high and shares in the bank stocks ran up so much before they reported earnings today that only a blow-out quarter would avoid a sell-off. While shares climbed in the morning, JP fell 1% by the close.

It reports Friday. Trades at an expensive 2x book value; it deserves this premium, but it's high. Trades at a low 10x PE. This can grind higher, but not soar.

The winners keep on winning. Greatest US bank. CEO has done a remarkable job. Benefited from the banking crisis last March. Companies with best balance sheets and management navigate tough times better and crush the competition. No reason this won't continue. 

Likes the money centre banks. Will do well with a normalized yield curve, as it enhances net interest margins. Fed signalling interest rates coming down should depress the short end of the curve, with the long end maintaining itself somewhat.

The group is trading at about a 30% discount to normalized valuations of around 13.5x earnings. That carries through to book value, trading at discounts to historical norms. He owns JPM, BAC, and MS, and that's where he'd put money.

The best of the best. Trading below historical valuations. Wind at its back, lower rates are its friend. He'd be a buyer.

Very well run company. Trading around ~8x earnings. 40% premium to book value. Will consistently perform well.  Expecting loan book to expand as we avoid recession. Would advise holding stock for the long term. 

It is the largest bank in the U.S. and has a strong balance sheet. It bought First Republic in May and this has been very accretive, targeting high net worth clients. It benefits from volatility in the smaller regional banks. She likes the CEO and management has a conservative approach.
Buy 23  Hold 9  Sell 0

He rode a covered call in anticipation of volatility. He captured a 90-cent profit one day, then closed it out.

He had sold the banks (MS, BAC, but is long JPM) to buy QQQs, and he stands by that rotation. If any banks decline, it would be the regional ones, which he's avoided since the spring crisis. His outlook on the banks is limited upside, given regulations restricting hoarding capital on the balance sheet, which will impede loan growth. Plus, the economy will start of contract. MS and BAC are good companies, but he'd rather buy the debt of these stocks, because their balance sheets will be fortified.

Owns shares of the company.
Favorite USA large cap banking company.
Regional banking crisis in the spring increased demand for products.
Not worried about economy slowdown impacting bank.
Reserves for loan losses have been set aside.
Good time to buy with recent share price weakness.

Hats off to an amazing quarter recently.

Today, their Q2 earnings were incredibly strong. You were rewarded to holding onto your bank stocks. It's the best of this sector.

Banks reported their Q2 today. JPM's loan-loss provisions are $100 billion lower a year ago if you strip out First Republic. That says something about the trajectory of the economy. Add to that the CEO's bullish comments about the economy and his bank's forecast. Without First Rep., they beat profits at 40%, a 67% profit rise with FR. Massive.