Jim Cramer Says “Don’t Wait” on Bank of America

Bank of America Corporation (NYSE:BAC) is one of the stocks that Jim Cramer shared insights on. Cramer shared his bullish sentiment around the stock despite the recent selling by Berkshire Hathaway. He noted:

“Let me ask you something. Why is Bank of America stock still just selling at 13 times earnings? The franchise has been putting up consistently terrific earnings. Brian Moynihan’s doing a great job. I think the stock’s cheap because of the relentless selling from Berkshire Hathaway. One day, Berkshire will finish selling, and when that happens, you’ll be paying a much higher price-to-earnings multiple for this fine bag. My advice: Don’t wait for them to finish. There’ll be a good quarter.”

A professional banker providing consultation to a customer in the security of his office.

Bank of America (NYSE:BAC) provides financial services, including consumer banking, wealth management, commercial lending, and investment banking. Additionally, the company offers trading, treasury, and risk management solutions for individuals, businesses, and institutions. On July 2, while discussing the major bank stocks, Cramer mentioned the stock. He remarked:

“Bank of America announced a 7.7% dividend increase and now it’s got a 2.3% yield… Bank of America and Wells Fargo are the next cheapest, but they both trade at a little less than 2 times tangible book value, a huge premium to Citi… And look, when you judge the bank stocks on a price-to-earnings basis, you get a similar story… Bank of America and Wells Fargo, 13 and 14 times earnings, respectively… The weakest Bank of America, still up nearly 11% for the year…

Still, with the banks featuring discount multiples compared to the overall market, you know what, I’m not so sure that the good times… necessarily have to end for this group. I think they can continue moving higher. The bottom line: In this environment, I bet the big banks are some of the best investments this year, yet still very inexpensive, at least on earnings versus the rest of the market, have more room to run, maybe much more.”

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