Jim Cramer parses big bank earnings and says stocks have ‘quite a bit more upside’

CNBC’s Jim Cramer on Friday reviewed earnings reports from top banks that reported this week, saying he’s impressed with all them, but especially Wells Fargo and Goldman Sachs. He said investors would have benefitted from owning all of these names this week and praised the industry as a whole.

“Despite the big gains for the banks this week, their stocks have quite a bit more upside, because those earnings explosions, well, I got to tell you, all they did was make the price to earnings multiples lower than we think, much lower than the rest of the market,” he said. “If you don’t yet own any of these banks, I want you to pick up at least one or two.”

Here is Cramer’s take on six major banks:

1. JPMorgan Chase: JPMorgan’s quarter easily topped earnings and revenue estimates, also posting record annual profits that came in at $58.5 billion. Cramer lauded the company’s lower-than-expected overhead ratio, which is costs divided by revenues. He was also encouraged by JPMorgan’s guidance for 2025, as the company raised its full-year net interest income forecast.
2. Bank of America: Cramer said Bank of America had “just an OK quarter,” and mentioned that the miss from its sales and trading business was noticeable. He said the company had a modest revenue beat and a solid earnings beat. He noted that the stock moved more when other banks reported this week instead of on the day of its own report.
3. Wells Fargo: While Wells Fargo slightly missed on revenue, it managed a substantial earnings beat, Cramer said. He said its report suggested the bank has good credit quality, adding that he likes that it also managed to maintain its “incredibly aggressive buyback.” Overall, he said, Wells Fargo’s quarter was solid, which is what investors need for the company, which is “still very much mounting a comeback.”
4. Citigroup: According to Cramer, Citigroup seems to be successfully executing its turnaround, noting that the bank beat on earnings and revenue and saw growth in each of its businesses. The highlight of Citi’s report, however, was its guidance, he said, which was “the most forward-looking guidance of anyone.”While Cramer said he’s still guarded on the stock — as it had struggled for while — he suggested it is the cheapest of its peers, and it has more upside if earnings continue to impress.
5. Goldman Sachs: Cramer was pleased with Goldman Sachs’ “colossal” beat, with the company reporting $11.95 earnings per share versus the $8.22 estimate from LSEG. He was impressed by the revenue growth in its numerous businesses, as well as the reduction in its operating expenses. While Goldman Sachs finished the week trading at an all-time high, Cramer said he thinks it has more room to run.
6. Morgan Stanley: Cramer liked Morgan Stanley’s large earnings and revenue beats, as well as growth in its institutional securities division, which includes investment banking, sales and trading. He also said he appreciated CEO Ted Pick’s commentary on the conference call, where he expressed excitement about momentum across different business segments, as well as opportunity in M&A.

Goldman Sachs declined to comment. JPMorgan Chase, Bank of America, Wells Fargo, Citigroup and Morgan Stanley did not immediately respond to request for comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Wells Fargo and Goldman Sachs.