A flattening U.S. Treasury yield curve has also flattened the stocks of the big financial banks over the past six months, but Action Alerts PLUS comanager Jim Cramer believes in the financial sector ahead of a this week's earnings releases.

JPMorgan Chase & Co. (JPM) , The Goldman Sachs Group Inc. (GS) and Citigroup (C) are all scheduled to report their quarterly earnings results this week, and Cramer believes that the stocks' recent downturn make them prime buying targets heading into earnings.

"These stocks have been losers of late because of a belief that they can't make enough money lending with the yield curve the way it is. But at 11, 10 and nine times next year's earnings, I think JP Morgan, Citi and Goldman represent tremendous value," Cramer said.

Losers might be putting it nicely a couple of these names.

Over the last six months, Goldman Sachs shares are down more than 11%, Citigroup shares are down nearly 11% and JP Morgan shares are down a little more than 3%.

"I know, value isn't important to many anymore. However, with the companies buying back an immense amount of stock -- Citi alone scooping up an incredible 10% of its own shares if the stock stays where it is this year and JP Morgan putting $21 billion to work buying its own stock -- I think the second half will be terrific for these companies," Cramer said.

Do you want more exclusive investing insight from Jim Cramer? Get 24/7 access to Jim's charitable-trust portfolio with a free trial to Action Alerts PLUS! You can also watch all of Jim Cramer's New York Stock Exchange live shows on YouTube.

More from Video

Tilray CEO: Surging Cannabis Industry Is a Threat to Food and Drug Players

Tilray CEO: Surging Cannabis Industry Is a Threat to Food and Drug Players

How This Former VC Player Became CEO of $2 Billion Cannabis Company Tilray

How This Former VC Player Became CEO of $2 Billion Cannabis Company Tilray

Lee Munson: Not Peak FANG Yet

Lee Munson: Not Peak FANG Yet

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

Even Standing Desk Company Varidesk Is Watching How the Trump Tariffs Play Out

Jim Cramer on Bank of America, Tariffs and the Goldman Sachs CEO Change

Jim Cramer on Bank of America, Tariffs and the Goldman Sachs CEO Change