Jim Cramer just tossed another log on the bank-stock fire. Fresh off the buzz around Electronic Arts Inc's (NASDAQ: EA) deal, the Mad Money host says JPMorgan Chase & Co (NYSE: JPM) and Goldman Sachs Group Inc (NYSE: GS) are "still cheap on a P/E basis" — a contrarian take when many investors think financials are tapped out.
- Track GS stock here.
Valuations That Defy The Tape
The intrigue is simple: JPMorgan trades at just over 15.6 times forward earnings, Goldman closer to 15.3 times, per Benzinga Pro data. Compare that to the S&P 500's 24 times multiple, and the gap is glaring. Banks have historically traded at discounts, sure, but the current setup is exaggerated by rate jitters and credit fears.
If the Fed's easing cycle materializes, net interest margins could stabilize, dealmaking could rebound, and those multiples could look like gifts in hindsight.
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Catalysts Lurking Under The Hood
Here's the kicker: Wall Street's deal machine is waking up. M&A pipelines are rebuilding, capital markets desks are stirring, and fee income could be the joker card for both firms in 2026.
At the same time, both banks are deploying buybacks aggressively. JPMorgan alone retired nearly $3 billion in stock last quarter — a lever that amplifies EPS without needing blockbuster loan growth.
That's the kind of quiet math that investors often miss when Fed-speak dominates headlines.
Investor Takeaway
Bank stocks aren't known for fireworks, but that's precisely why Cramer's call stands out. With JPMorgan and Goldman trading behind the market's multiple, the setup feels less like chasing growth and more like buying optionality at a cheap price.
If rates ease and the deal cycle accelerates, today's "boring" valuation could morph into tomorrow's upside surprise. For investors willing to sit tight, Cramer's cheap call might not stay cheap for long.
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