Jim Cramer: Many Banks Are Overvalued
Jim Cramer says the banks trade on earnings and their earnings aren't going to be anything to celebrate.
TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer says the banks trade on earnings and their earnings aren't going to be anything to celebrate. 'These are really challenged companies where you have to start realizing they should sell at five and six and seven times earnings like airlines,' Cramer said. 'Citigroup (C) - Get Report sells at eight times - the average larger bank sells at ten to eleven times and that can't be justified given the lack of growth.' The S&P 500 financials sector is down 4.9 percent over the past month.
At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.
