Wells Fargo & Co (WFC) , JPMorgan Chase & Co. (JPM) and Citigroup Inc (C) all beat on earnings per share estimates Friday. Investors are hoping Bank of America Corp (BAC) and Goldman Sachs Group Inc (GS) top estimates too, when the companies report earnings on Tuesday before the open.
TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, has positions in Citigroup and Wells Fargo. But that doesn't mean he doesn't have his own thoughts on Bank of America and Goldman Sachs—the latter of which he used to work for.
"I like Bank of America," Cramer said, "I do think that it's a great long-term hold." The bank's credit balances are setting up the company to benefit tremendously should the Federal Reserve continue raising interest rates. It also helps that CEO Brian Moynihan has been investing so much in technology.
As for Goldman Sachs, Cramer is concerned about the stock's recent rally into the quarter. That could set up investors for disappointment. But thinking longer term, make no mistake about Goldman's potential.
If the industry goes through a series of deregulation, Goldman Sachs will have more opportunities on the trading and sales front—two things the bank is very good at. Investors tend to underestimate how much money can be made in these two categories, he said, concluding that Goldman could make a killing in these segments.
Bank of America shares fell 0.9% to $24 by Monday's close.
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