Real-Time Quote
Quote | News | Chart | Details
STI News & Analysis
Jim Cramer: Despite Failing Stress Test, SunTrust is a Buy
19 Mar 2012 EDT -
Page 1 of 2 | Next Page
Show Entire Article

SunTrust Banks may have failed the Federal Reserve’s stress tests, but “Mad Money” host Jim Cramer thinks the stock still has a lot of upside ahead.

“While the other banks have moved up colossally since the bottom, there’s still plenty of room for SunTrust to run and you want to run with it as it gets there,” he said.

Cramer thinks the kind of economic catastrophe the Fed used in its stress test isn’t going to happen. Also in SunTrust’scorner — it raised its guidance the same day it flunked the test.

While it is up 39 percent year-to-date, versus 28 percent for the banks in general, Cramer believes SunTrust might have the “most unrecognized earnings power of any of the regionals.”

In fact, he said he wouldn’t be surprised if the bank asked the Fed for permission to put through a nice-sized dividend.

“I don’t know if the bank’s stock can get back to $89, where it was five years ago ... but I think half of that is a decent target over the next 18 months, and that would give you an 81 percent gain from these levels,” Cramer said.

When this story was published, Cramer’s charitable trust owned SunTrust Banks.

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Page 1 of 2 | Next Page
Show Entire Article
STI News & Analysis
 Lightning Round: This franchise is dynamite - 19 Feb 2015 EST - CNBC.COM
 4 ways marriage can be a moneymaker - 15 Feb 2015 EST - CNBC.COM
 Cramer Remix: Buy this as oil swings - 11 Feb 2015 EST - CNBC.COM
 Lightning Round: Charts are lining up for this group - 11 Feb 2015 EST - CNBC.COM
 A big part of the market is headed for the rocks - 11 Feb 2015 EST - CNBC.COM
 More STI News
Real-Time Quote
omniture pixel