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.”

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.

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