Jim Cramer Explains Why Big Banks Like JPMorgan Still Have Room to Grow

JPMorgan Chase & Co. (NYSE:JPM) is one of the stocks Jim Cramer recently expressed his thoughts on. Cramer highlighted the firm’s low valuation despite being at its 52-week high. He said:

“This morning, EA, the old Electronic Arts, got a $55 billion bid, the largest all-cash sponsored take-private deal in history. Silver Lake’s the prominent name among the buyers, but it’s PIF, the Saudi sovereign wealth fund, that’s putting up most of the money. Well, there’s a buyer for you… JPMorgan’s advising the buyers and providing $20 billion in debt financing. These are huge tickets. Big enough to influence the quarter for JPMorgan… JPMorgan stock is up almost 32% for the year… What makes me think there’s still room to run? Because the big banks are still cheap on earnings. JPMorgan, despite being at its 52-week high, sells at about 16 times earnings.”

pcruciatti / Shutterstock.com

JPMorgan Chase & Co. (NYSE:JPM) is a global financial services firm providing consumer and commercial banking, credit, lending, and payment solutions, along with investment banking, securities services, and risk management. The firm also delivers wealth and asset management, retirement planning, and advisory services for individuals, institutions, and governments.

While we acknowledge the risk and potential of JPM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JPM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.