Jim Cramer Highlights Undervalued Stocks Amid Tech Fatigue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 02 2026
0mins
Source: CNBC
- Investment Opportunity Identification: Jim Cramer highlights that as tech stocks lose momentum, investors should focus on undervalued stocks, particularly JPMorgan Chase, which is trading at a forward P/E of about 13, down from 15 at the start of the year, indicating its attractiveness.
- Healthcare Sector Potential: Cramer believes Johnson & Johnson may present a more appealing investment option due to its drug pipeline and growing medical technology business, although he remains positive on Eli Lilly as well.
- Consumer Goods Stability: Cramer favors Kimberly-Clark for its strong brand portfolio and attractive dividend yield, with the planned merger with Kenvue expected to further enhance its market position.
- Restaurant Sector Rebound: Cramer points to McDonald's and Yum! Brands, arguing that the tech sector's popularity has undervalued these stocks, particularly with Yum! Brands considering the sale of Pizza Hut, which sweetens its investment case.
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Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 312.700
Low
260.00
Averages
341.38
High
400.00
Current: 312.700
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Deposit Growth Outlook: Although deposit balances are normalizing, JPMorgan expects modest growth moving forward, with margins at the upper end of expectations and a target of capturing a 15% market share, further solidifying its market leadership.
- Credit Risk Management: Lake noted that credit card balances have normalized to pre-pandemic levels, with charge-off rates expected to be at the low end of the 3.3%-3.6% range by 2026, demonstrating the company's effectiveness and robustness in credit risk management.
- AI Technology Deployment: JPMorgan plans to deploy AI agents capable of operating autonomously for hours by 2026, which is expected to drive a 20% increase in sales and allow individual bankers to expand client coverage by 50%, showcasing the company's forward-thinking approach to technological innovation.
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- M&A Market Position: According to Dealogic, Citigroup has fallen to fifth place among M&A advisors in 2026, down from fourth in 2025, highlighting challenges in a competitive landscape.
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- New Model Launch: OpenAI is set to launch a new AI model, codenamed 5.6, this month, which is expected to represent a significant improvement over the current GPT-5.5, potentially enhancing the company's competitive edge and attracting more investor interest.
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See More
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- Exceeding Earnings Targets: JPMorgan Chase has consistently surpassed its 25% return on equity target for five consecutive years, as CFO Marianne Lake highlighted the benefits of macroeconomic tailwinds and the key drivers being deposits and credit, indicating strong performance in the financial market.
- Deposit Growth Outlook: Although deposit balances are normalizing, JPMorgan expects modest growth moving forward, with margins at the upper end of expectations and a target of capturing a 15% market share, further solidifying its market leadership.
- Credit Risk Management: Lake noted that credit card balances have normalized to pre-pandemic levels, with charge-off rates expected to be at the low end of the 3.3%-3.6% range by 2026, demonstrating the company's effectiveness and robustness in credit risk management.
- AI Technology Deployment: JPMorgan plans to deploy AI agents capable of operating autonomously for hours by 2026, which is expected to drive a 20% increase in sales and allow individual bankers to expand client coverage by 50%, showcasing the company's forward-thinking approach to technological innovation.
See More
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- Trump's Endorsement: President Trump praised Citigroup and CEO Jane Fraser on social media for being ranked number one in M&A advisory market value in Q1 2026, although the specific ranking source remains unclear.
- Stock Price Fluctuation: Citigroup shares reached a high of $137.12 at market open, up nearly 1.8%, but closed down 1%, still outperforming JPMorgan and Goldman Sachs, indicating market confidence in its future.
- M&A Market Position: According to Dealogic, Citigroup has fallen to fifth place among M&A advisors in 2026, down from fourth in 2025, highlighting challenges in a competitive landscape.
- Stock Performance: Citigroup's stock has risen 14.3% in 2026, significantly outperforming the S&P 500's 6.2% gain, reflecting a gradual restoration of market trust during its multi-year turnaround under Fraser.
See More
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- IPO Filing Submitted: OpenAI has submitted its IPO documents to the SEC, with CEO Altman indicating that technological advancements could influence the timing of the public listing, which is expected within the next year, thereby providing the company with flexibility to adapt to market conditions.
- New Model Launch: OpenAI is set to launch a new AI model, codenamed 5.6, this month, which is expected to represent a significant improvement over the current GPT-5.5, potentially enhancing the company's competitive edge and attracting more investor interest.
- Infrastructure Needs: As OpenAI's infrastructure and computing demands grow, Altman mentioned that the company is considering leasing a proposed 10-gigawatt data center in Ohio, a project that may require substantial financial backing from Nvidia, thereby accelerating the IPO timeline.
- Employee Sentiment Optimistic: Retail sentiment for OpenAI on Stocktwits is described as “extremely bullish,” indicating strong market confidence in the company's future performance, which could further propel the success of its IPO plans.
See More
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- Lawsuit Dismissal: U.S. District Judge Jed Rakoff dismissed the lawsuit against JPMorgan Chase, Barclays, and Fifth Third, where investors alleged the banks ignored significant risks associated with the now-bankrupt Tricolor, with the judge indicating he will provide reasoning later.
- Investor Allegations: Holders of over $270 million in Tricolor asset-backed notes accused the banks of 'sticking their heads in the sand' while financing and securitizing Tricolor's auto loans, contributing to a 'Ponzi-like fraud' that saw some notes trading below 10 cents on the dollar.
- Bank Defense: In seeking dismissal, the banks argued that the investors only alleged negligence rather than intent to defraud, asserting that claims of failing to stop fraud sooner have never justified securities fraud claims in New York federal courts.
- Bankruptcy Risks: Tricolor, which primarily provided auto loans to lower-income Hispanic communities in the southwestern U.S., filed for liquidation in September, highlighting the risks of private credit where investors provide capital with less regulatory oversight, resulting in significant losses for the banks involved.
See More
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- Secret Escort Operations: Trump disclosed that the U.S. military has secretly assisted 200 commercial vessels in transporting over 100 million barrels of oil through the Strait of Hormuz, effectively keeping oil prices around $90 per barrel instead of surging above $200.
- Global Oil Supply Impact: Before the U.S. and Israel attacked Iran on February 28, approximately 20% of global oil supplies, or 20 million barrels per day, passed through Hormuz; however, Iranian retaliatory attacks led to a sharp decline in traffic, resulting in the largest supply disruption in history with losses exceeding 1 billion barrels.
- Market Dynamics Analysis: JPMorgan noted that despite the naval blockade and steep decline in commercial traffic, significant volumes of crude and petroleum products may still be transiting through Hormuz, estimating around 2 million barrels per day might be moving via tankers that have turned off their transponders.
- Military Coordination and Response: U.S. Central Command indicated that the military is projecting ships from attack and coordinating with vessels seeking safe passage through Hormuz, ensuring navigational safety while avoiding escalation of conflicts with Iran.
See More
U.S. Justice Department Investigates Major Banks for Account Closures
- Investigation Launched: The U.S. Justice Department has issued subpoenas to several major banks, including JPMorgan Chase and Bank of America, to investigate whether these banks improperly closed customer accounts for political reasons, highlighting significant concerns regarding compliance in the financial sector.
- Bank Response: Bank of America declined to comment on the investigation, indicating a potentially cautious approach in legal proceedings that could affect its public image and customer trust.
- Potential Impact: Should the investigation confirm improper actions by the banks, it could lead to substantial fines and regulatory measures, negatively impacting their operations and financial health.
- Market Reaction: This incident may prompt a reassessment of compliance risks within the banking sector, leading investors to adopt a cautious stance towards the stock performance of the involved banks, potentially affecting their stock price volatility.
See More
