On January 8, 2026, CNBC's Jim Cramer declared JPMorgan Chase & Co. (JPM) undervalued compared to its peers, citing a price-to-earnings ratio below 10 and a dividend yield exceeding 3.2%. The comment comes amid sector rotation and rising scrutiny of financial stocks.
- JPMorgan (JPM) trades at a forward P/E of 9.8, below S&P 500 average of 18.3
- JPM’s dividend yield stands at 3.2%, above sector median
- Cramer’s commentary follows a period of underperformance in financial stocks
- Intraday stock movement: +2.4% on increased trading volume
- Multiple brokerages have upgraded JPM to 'overweight' following the commentary
- Market sentiment shift may trigger sector rotation toward financials
Jim Cramer, a prominent voice in financial media, labeled JPMorgan Chase & Co. (JPM) as 'outrageously cheap' in a segment aired on January 8, 2026, emphasizing its current valuation relative to broader market benchmarks. He noted that despite JPM’s consistent earnings growth and dominant position in investment banking and asset management, its stock trades at a forward P/E of 9.8, significantly below the S&P 500’s average of 18.3. This discount, he argued, is unjustified given the firm’s robust capital position and resilience during recent economic headwinds. Cramer highlighted JPM’s ability to maintain a 3.2% dividend yield, a figure that stands out in a low-rate environment and appeals to income-focused investors. He contrasted this with other large-cap financial institutions, such as Bank of America (BAC) and Citigroup (C), which trade at higher multiples despite similar earnings stability. His analysis suggests that the market is overlooking JPM’s operational strength and long-term earnings potential. The commentary coincides with a broader shift in investor sentiment, where financials have lagged behind tech and growth sectors in 2025–2026. This divergence may reflect concerns over interest rate policy and credit risk, yet Cramer contends that JPM’s diversified revenue streams and conservative balance sheet insulate it from such risks. He urged investors to view the current pullback as a buying opportunity, especially given the stock’s historical performance during cyclical downturns. Market reactions include a 2.4% intraday rise in JPM shares and increased trading volume, signaling renewed interest. Analysts across major brokerages have begun revisiting their price targets, with several upgrading the stock to 'overweight' status. The sentiment shift could influence portfolio allocations within mutual funds and ETFs focused on financial services.