Jim Cramer Says Bank Stocks Are 'All Cheap' — But This One Name Is 'The Cheapest Of All,' Has The 'Most Upside'
TV host Jim Cramer is leaning back into the bank trade, saying that depressed valuations across the sector have created an opportunity, and that one stock, in particular, stands out with the most potential.
Bank Stocks Are ‘All Cheap’
On Tuesday, in a post on X, the renowned host of CNBC’s “Mad Money” said, “The banks are all cheap,” while mentioning one particular banking stock as the “cheapest of all,” which, as a result, offers the “most upside” relative to others.
The stock he's referring to is Virginia-based Capital One Financial Corp. (NYSE:COF), the sixth-largest bank in the United States. Cramer said that he’s backed this name for a long stretch, and noted that he’s maintained his bullish view on it “for 60 points.”
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This comes on the heels of Capital One's $35.4 billion acquisition of Discover Financial Services, which closed earlier this year and is expected to generate substantial synergies.
The company also holds $56.92 billion in excess capital, giving it room to support buybacks, while the stock trades at just 10.91 times forward earnings.
| Stocks | Year-To-Date Performance | Price-To-Earnings Ratio |
| JPMorgan Chase & Co. (NYSE:JPM) | +25.21% | 14.61 |
| Wells Fargo & Co. (NYSE:WFC) | +26.64% | 13.04 |
| Bank of America Corp. (NYSE:BAC) | +20.89% | 12.32 |
| Citigroup Inc. (NYSE:C) | +56.46% | 11.03 |
| Goldman Sachs Group Inc. (NYSE:GS) | +52.46% | 15.82 |
| Capital One Financial Corp. | +29.15% | 10.91 |
Other Analysts Turn Bullish
Several other prominent analysts have turned bullish on Capital One in recent weeks, with Wolfe Research initiating coverage of the stock with an “Overweight” rating and a target of $270 a share, earlier this week, which represents an upside of 16.97%.
Citigroup analysts have similarly reiterated their “Buy” rating on the stock, while raising their target from $275 to $290, representing a 25.64% upside from current levels.
The banking sector has had a great run this year, with a key catalyst being the 2025 Federal Reserve stress test, which major banks passed with capital left to spare, leading to $100 billion being returned in the form of dividends and buybacks.
Shares of Capital One were up 0.09% on Tuesday, closing at $230.81, and are up 0.52% overnight. The stock scores high on Momentum in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.
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