Will Jpmorgan Be The Next $1 Trillion Stock? Jim Cramer Says Bank Has 'Something Special'

JPMorgan & Chase (JPM) stock edged higher in extended trading on Tuesday after the bank received a ratings upgrade from CFRA, while CNBC's Jim Cramer endorsed it to enter the coveted $1 trillion club.

"JPMorgan's got something special. It excels at so many things: lending, capital markets, trading, and perhaps most important, statesmanship, with CEO Jamie Dimon performing at a level that's rare for any industry," Cramer said, according to a CNBC report.

"JPMorgan has always been a top-quality bank, but it's now become a fantastic place to work, and its global reach is unmatched. There's a reason its market cap is so much bigger than the other major banks."

Apart from the magnificent seven firms Apple, Nvidia, Microsoft, Amazon, Alphabet, Tesla and Meta, only Berkshire Hathaway is valued above $1 trillion. JPMorgan's current market capitalization stands at approximately $850 billion, significantly above that of its U.S. peers. The next biggest lender is Bank of America, with a market capitalization of around $375 billion.

Cramer noted that JPMorgan's stock is a "horse that's bided its time but is now at the far turn," while also acknowledging the strong performance of other U.S. banks. He added that a rise in price-to-earnings multiples has been the "real rocket fuel" for JPMorgan and its peers as Wall Street is willing to pay up for banks.

Retail sentiment on Stocktwits about JPMorgan was 'bearish' at the time of writing, a severe dip from 'extremely bullish' levels just six months ago.

Separately, CFRA analyst Kenneth Leon raised the stock to 'Buy' from 'Hold', as the brokerage saw strong margins in trading, equity and debt underwriting, as well as M & A advisory fees and fee growth from asset and wealth management. According to fiscal data, the stock has a consensus price target of $306.17.

"With expected rate cuts and U.S. economic growth near 2.0%, we believe net interest income (NII) will make up for lower rates with higher loan volume activity in both consumer and commercial," Leon noted.

Separately, the bank confirmed that it will raise its quarterly dividend to $1.50 from $1.40. The lender also launched a $50 billion share repurchase program in July, after JPMorgan and its peers easily passed the Federal Reserve's stress test, which assessed the bank's balance sheets against a worst-case scenario.

JPMorgan stock has gained about 29% this year. Despite initial uncertainty driven by tariffs, U.S. banks have thrived this year due to operational improvements, a strong outlook, and a favorable regulatory environment.

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