Jim Cramer: JPMorgan and Citigroup Remain Outrageously Cheap

Jim Cramer, on Squawk on the Street, reiterated that JPMorgan Chase & Co. (NYSE:JPM) and Citigroup Inc. (NYSE:C) financial stocks remain outrageously cheap relative to the broader market.

JPMorgan's Record Earnings and P/E Multiple Debate

■$58 billion revenue, beating analyst estimates of $51.35 billion

■Record $21.2 billion profit, adjusted EPS $6.14 (vs. estimate $5.85)

■Forward P/E of 15× labeled a "bargain" by Cramer

■Anecdote about Jamie Dimon's physicist brother spurred the comment, "I’ll take his stock at fifteen times earnings"

Citigroup's Wall Street 'Trained Rabbit' Momentum

■Citi described as "loved by everyone on Wall Street" and "most likely to jump higher next week"

■Persistently low estimates likened to a "trained rabbit" by Cramer

■Pre‑first‑quarter earnings enthusiasm from Cramer acts as a near‑term catalyst for the stock

RBC Capital's Price Target Hike and Basel-III Impact

■Target price raised from $330 to $370, Overweight rating maintained

■Markets revenue up 35% to $12.1 billion

■Investment banking fees jumped to $3.3 billion

■Basel-III endgame proposal expected to give JPMorgan an additional tailwind

Gökberk Uçar: JPMorgan’s robust market performance coupled with Citigroup’s expectation‑defying momentum highlights the financial sector’s short‑term re‑rating potential. Yet the sustainability of the 15× P/E multiple must be weighed against interest‑rate sensitivity and regulatory shifts; a selective, disciplined approach to adding these names to a portfolio is warranted.