Prominent market commentator Jim Cramer on Tuesday spoke about three financial stocks which he believes are worth buying.
Cramer said the scrips could be tremendous performers if the Federal Reserve decides to "end the pain at some point in time next year," according to a CNBC report.
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Major Wall Street indices closed in the green on Tuesday, albeit just marginally higher, ending a four-day losing streak as investors and traders are watching out for a much anticipated year-end rally. The SPDR S&P 500 ETF Trust SPY closed 0.14% higher while the Vanguard Total Bond Market Index Fund ETF BND shed 0.66%.
Following are the three picks named by the market expert:
1. Wells Fargo & Co WFC: Cramer termed the stock a great “turnaround story” that could soar next year if the economy doesn’t fall into a severe recession. He believes the company’s performance will be better once it pays off a $3.7 billion settlement with the Consumer Financial Protection Bureau as well as any related legal fees, the report said.
2. Morgan Stanley MS: Cramer believes the company’s years-long pivot into the asset management business will pay off in the long term. While its asset management business does take a hit when the stock market declines, it’s still steadier than any business related to capital markets, Cramer added according to the report.
3. S&P Global Inc SPGI: Cramer stated S&P Global has struggled this year because its biggest business is rating bonds, and bond issuance slowed this year due to the central bank’s interest rate hikes. However, its stock could witness a major comeback if the Federal Reserve halts tightening the economy in 2023, he said according to the report.
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