Cramer's Morning Take: Wells Fargo 5/14/25

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Jim Cramer (1:04)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting. I think today could be a reversal day. We keep going higher and higher and higher. One of the same news, oscillator and a cape were overbought, but I thought that's one of the reasons why I was smart to trim some Wells Fargo.

SPEAKER_7 (1:22)

Yeah, look, Wells, by the way, Great Bank doing incredibly well.

Jim Cramer (1:27)

Right, you got to make that just like Texas Roadhouse. Great, great situation.

SPEAKER_7 (1:29)

But it's one of our largest positions, has been for a very long time. It's up 8% year to date, outperforming the rest of the market, flatish. It's up, by the way, 8% since they announced that huge $40 billion buyback, which at the time was 17% of its market cap. Asset cap, could it come off this year? It seems like there's a lot of momentum there.

Jim Cramer (1:49)

And I'm glad you're putting it like that. I want people to understand at home that we make some trims. We trimmed that bulk. It was a perfect time to know. But we trimmed some because we can't have really huge positions and then be able to have more large positions. I mean, for instance, G.E.Vernova has to be bought on the way down, and you have to have the capital to buy G.E.Vernova. And that means you just can't just be riding around and say, you know what, let's come in with more right here. I mean, obviously, when you see something up like this, you've got to be patient. And by the way, we wanted to be involved, but we got restricted. But I'm just saying that there's nothing wrong with Wells. What's wrong is portfolio management says, are you kidding?

SPEAKER_7 (2:30)

Yeah, I was looking back, the highest level where we sold Wells previously was around 70 bucks. You've had a nice $5 move since then, $6 move.

Jim Cramer (2:39)

And look, now it's to be a little more right sized. We won't be the- Yeah, just a little. Yeah, I mean, by the way, at this price, you know I like Capital One more, because Capital One, the deal closed, you know, the deal's dying.

SPEAKER_7 (2:50)

We are looking forward to that deal, expected to be completed by May 19th. We were chatting earlier, kind of looking at where the analysts are on the stock. 16 buys, 17, 7 holds, 1 sell according to Bloomberg. Consensus price target a little bit below 215 But the big thing here is that people, and this is Capital One, they're using a $25 in EPS number out to 2028, which is up from 1575 this year. So you're talking a 3-year CAGR of around more than 16%.

Jim Cramer (3:20)

And how about the fact that we can avoid a recession, that then their credit's going to be much better. Now, I know people will say, Jim, you like it because the CF, Consumer Finance, the Bureau has been closed, or whatever, they've made it so that they're masculine. I like this because the Discover network that they have is going to be fantastic.

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All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet, or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment, or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club Disclaimer, please visit cnbc.com/investingclubdisclaimer.