Intel Corporation (NASDAQ:INTC), Goldman Sachs Group Inc (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) stocks are rallying on the markets because these companies have returned more than the market estimates and this year, returns have been a major trend on the Wall Street.
Jim Cramer of CNBC was discussing the recent quarterly results of these stocks and he was said that Intel Corporation (NASDAQ:INTC) did surprise the investors by delivering more than expectations. He was also impressed by the CEO and how he took the company to a new track where they are now focusing on mobile and tablet market too as aggressively as they are in the PC market.
The next set of stocks he discussed were Goldman Sachs Group Inc (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) and he said he likes the stocks. Cramer said that he likes the stocks because both of the stocks are selling at 10 times earnings where S&P is currently at 17 times earnings.
“My charitable trust has been sitting on, holding, whatever you say, JP Morgan and Goldman Sachs, because they are ridiculously cheap versus the average stock in the market” Cramer said.
According to him, JPMorgan Chase & Co. (NYSE:JPM) which is one of the best commercial banks and Goldman Sachs Group Inc (NYSE:GS) a premium brokerage house across the globe to sell at such a lower price is actually a discount. However he said all the regulatory schemes actually hit these banks because of the punishments these companies get for past issues and the need to raise a huge amount of capital at the same time makes it very tough for such companies.
“Today, however we say how well JP Morgan can do with all the regulatory hurdles largely behind them; we saw how much money Goldman Sachs can make when the equity markets are good.” Cramer stated discussing the results of these companies.
He said that these companies such as Intel Corporation (NASDAQ:INTC), Goldman Sachs Group Inc (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) showed that when there are no expectations results like these can really boost the stock by great margins. He thinks that the finance stocks such as JP Morgan or Goldman stocks are set to go much higher.