view transcript

let me talk about this week first, because the financials are on tap. We have two that report this Friday, JP Morgan and Citigroup. And then next week Goldman Sachs gives us its report card. 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. Also, of course, people relate it to China, regardless. But, at 11, 10 and 9 times next years earnings, I think JP Morgan, Citi and Goldman represent tremendous value. I know value isn't important to many anymore. However, with the companies buying back an immense amount of stock ... Did you know that Citi alone is scooping up an incredible 10% of its shares if the stock stays where it is this year?
JP Morgan's putting 21 billion dollars to work buying its own stock. Now that the [seecore 00:15:37] review is over, I think the second half will be terrific for these companies. You know what? I keep hearing how bad it's going to be. It's hard for them not to make tons of money. I think too many investors are huddled in stocks like Jack Henry that I profiled last night on Mad Money, and not enough are actually in the real fins. We will know soon enough, but if you don't own any of these right here, right now, even though it's up, I would tell you go buy some Citigroup. Go buy some Citigroup. We did not that long ago.

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.