With a net worth of approximately $150 million, Jim Cramer, known for his show "Mad Money" on CNBC, is one of the most popular financial news anchors. He is the founder and former portfolio manager of hedge fund Cramer Berkowitz, for which he generated a return of nearly 24% after management expenses and ancillary charges.
Cramer is also the co-host of "Squawk on the Street," which runs daily at 9 a.m. ET on CNBC and the "CNBC Investing Club with Jim Cramer."
The Harvard University alum has a bullish outlook for 2024 as the Federal Reserve has successfully managed a soft landing.
"Not only is the Fed no longer our enemy, it's much more likely to become our pal, assuming the economy stays on its current, slower course," Cramer said. "This is the about-face that the bulls were waiting for."
JPMorgan Chase & Co. (NYSE:JPM) is the largest bank in the U.S., with approximately $3.9 trillion in assets as of Sept. 30. Despite banking woes triggered by the collapse of the Silicon Valley Bank in March, JPMorgan was one of the best-performing banking stocks, surging by nearly 27% in fiscal 2023.
The stock gained 1.16% during the first trading day of 2024 to close at a record high of $172.08. Barclays issued an Overweight rating on JPMorgan stock on Jan. 2, with a price target of $212, reflecting a potential upside of more than 23%.
JPMorgan benefitted substantially from its acquisition of the distressed First Republic Bank in May, as the banking giant managed to retain 90% of the latter's clients since the takeover.
JPMorgan also reported better-than-expected financials in the fiscal third quarter of 2023, which ended in September, as the bank's net interest income rose by 30% year over year to $22.9 billion. Excluding First Republic Bank's clients, JPMorgan's net interest income rose by 21% from the same period last year in the third quarter.
This momentum will likely continue in the near term, as analysts expect the behemoth's annual earnings per share (EPS) to come in at $15.16 in fiscal 2023, indicating a 25.5% rise year over year.
General Motors Co. (NYSE:GM), one of the top four car manufacturers in the U.S., is poised to rally in 2024 as it undergoes substantial structural changes to streamline operations. The stock has had a positive start to 2024, rising by 36 basis points on the first trading day of the year.
Citigroup has a Buy rating on General Motors stock with a price target of $95, indicating a potential upside of over 163%. RBC Capital Markets maintains an Outperform rating on the stock with a price target of $54, indicating a potential upside of nearly 50%.
The company is focused on establishing dominance in the electric vehicle (EV) segment, aiming to manufacture at least 1 million EVs in North America by next year. General Motors has also taken steps to solidify shareholder returns to rejuvenate investor interest, as the company hiked its annual dividend payouts by 33% to $0.48 beginning this month.
"We are finalizing a 2024 budget that will fully offset the incremental costs of our new labor agreements, and the long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently and further reducing our fixed and variable costs,” General Motors Chairman and CEO Mary Barra said in November. “With this clear path forward and our strong balance sheet, we will return significant capital to shareholders.”
