Jim Cramer Highlights Undervalued Stocks Amid Tech Fatigue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18 hours ago
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: 300.960
Low
260.00
Averages
341.38
High
400.00
Current: 300.960
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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- Capital Buffer Changes: Last year, major banks saw significant reductions in their stress capital buffers, with JPMorgan Chase and Bank of America dropping to the minimum of 2.5%, indicating strong bank health and freeing up funds for shareholder returns.
- Increased Shareholder Returns: The reduction in capital buffers allowed banks to boost dividends and engage in share buybacks, with the six largest banks posting stock price returns exceeding 25% in 2025, and Citigroup leading with a remarkable 66% increase.
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See More
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See More
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- Massive Asset Management Scale: The firm's wealth management division oversees the world's largest client assets totaling $7.35 trillion, and through acquisitions of Solium Capital and E-Trade, it has successfully transformed employee stock plans into a crucial wealth management channel, further solidifying its market position.
- AI-Driven Business Transformation: Morgan Stanley's AI strategy aims to assist fast-growing tech and biotech firms in managing complex stock plans without increasing HR support, which is expected to significantly reduce operational costs and enhance service efficiency.
- Application of Open Standards: The bank leverages the open-source Model Context Protocol to allow AI models to connect to data sources, marking a forward-looking shift in its strategy for the AI era, which is anticipated to strengthen its competitive edge in future markets.
See More
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See More
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- Declining Chinese Demand: JPMorgan's analyst reported a surprising 9% drop in China's oil demand, equivalent to 1.5 million barrels per day, which may reduce global demand pressure and influence oil price trends.
- Global Supply Surplus: The world is experiencing an oversupply of oil, with Saudi Arabia and the UAE ramping up production, which is expected to further depress prices, especially as the U.S. Strategic Petroleum Reserve is being drawn down at a rate of 8-9 million barrels per week.
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