Jim Cramer Says Goldman Sachs “Will Have Terrific Numbers and Even Better” Story

The Goldman Sachs Group, Inc. (NYSE:GS) is one of the stocks that Jim Cramer shared insights on. Cramer mentioned that he likes the stock, and the Charitable Trust owns it, as he commented:

“Wednesday, we hear from the two big investment banks… Goldman Sachs and Morgan Stanley. I think both will have terrific numbers and even better stories now that the mergers and acquisition business has exploded in the IPO markets, warm, bordering on hot. What a change from even two months ago. And these two companies are going to reap outsized benefits. You know, I like them both. My Charitable Trust owns Goldman Sachs, my alma mater, from the 80s.”

A close-up of a financial advisor giving advice to a customer, demonstrating the importance of consumer and wealth management.

Goldman Sachs (NYSE:GS) provides financial advisory, investment management, lending, trading, and banking services across asset classes. The company also offers credit cards, transaction banking, and wealth planning for corporate and individual clients. On July 2, Cramer discussed the stock in detail, as he said:

“Goldman Sachs, which we own for the Charitable Trust… let’s just say it’s had a smaller dividend payout than its peers for a long time, but also just announced a major 33% dividend boost. Now, even after that, the stock only yields 2.23%, but that is no longer chintzy… Goldman trades at 2.22 times book value… Goldman Sachs, JPMorgan, and Morgan Stanley have the most valuable franchises… Morgan Stanley and Goldman are two tremendous investment banks…

And look, when you judge the bank stocks on a price to earnings basis, you get a similar story… Goldman Sachs, JPMorgan, and Morgan Stanley are once again on the more expensive side, all selling for roughly 16 times earnings. To put that in perspective, though, the overall S&P 500 currently trades at close to 24 times this year’s earnings estimates. So, wow, these are outta whack. I would say they’re cheap… The strongest, Cramer fave, and former employer, Goldman Sachs, has rallied 25% [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. As for which ones you should own, well, that’s a personal choice. I’m very happy with Goldman Sachs and Wells Fargo. We own those for the Charitable Trust.”

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