NEW YORK (TheStreet) -- On the heels of J.P. Morgan (JPM - Get Report) and Wells Fargo's (WFC - Get Report) earnings reports, TheStreet's Jim Cramer says he is looking at J.P. Morgan when the yield is at 3.25% and investors are "throwing it away." He adds J.P. Morgan's execution was poor.
Wells Fargo, on the other hand, had "absolutely terrific" execution, but Cramer notes the stock is priced for perfection. He thinks both stocks will come down and believes the whole banking sector is for sale. "Don't bottom fish yet," Cramer says. "The bottom isn't here."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, JPM's share price has jumped by 29.47%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JPM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 90.17%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.09% is above that of the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.1%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- JPMORGAN CHASE & CO's earnings per share declined by 6.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, JPMORGAN CHASE & CO reported lower earnings of $4.32 versus $5.19 in the prior year. This year, the market expects an improvement in earnings ($5.90 versus $4.32).
- You can view the full analysis from the report here: JPM Ratings Report