CNBC’s Jim Cramer praised Thursday. morgan stanley and goldman sachssuggesting the financial giant is worth more than the price it’s currently trading at.
“These aren’t temporary roller coaster companies. They’re granite, tungsten and even solid,” he said. “Yet they’re selling at a much lower multiple than Colgate or Procter & Gamble or the average stock price of the S&P 500. That’s a travesty.”
Morgan Stanley and Goldman Sachs released their quarterly reports on Thursday, successfully impressing Wall Street. The performance of both banks was boosted by strength in wealth management. Each company set new 52-week highs, with Morgan Stanley up 5.78% and Godman Sachs up 4.63%.
Mr. Kramer recalled the early days of his career when he applied for a job at Goldman Sachs and was repeatedly turned down. He explained how he was finally hired after many difficult efforts to get his foot in the door. Mr. Kramer said he impressed recruiters with his extensive knowledge of stocks, which helped him secure an offer from Goldman Sachs, as well as a pending bid from fellow firm Morgan Stanley.
Mr. Kramer said the standards for these banks are incredibly high, meaning buyers should realize that their stocks are worth more than their current price, even after Thursday’s rally.
Mr. Kramer said investment banks were “finally starting to reap the rewards,” suggesting the group’s gains would continue.
“We’ll let you know when it’s too late to buy, but we’re definitely not there yet,” he said.
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