Jim Cramer said there’s more room for bank stocks to run after a blockbuster year. Just don’t buy them ahead of earnings later this month. Club holdings Wells Fargo and Goldman Sachs hit record highs in 2025, jumping nearly 36% and 57%, respectively. Still, Jim argues that favorable regulations under the Trump administration mean there’s more upside to come. “This group has true momentum,” Jim said during “Squawk on the Street” on Monday. “When you look at what the government is willing to bless, I think that it’s really positive for all of these banks.” After all, the White House has taken a far more lenient approach than the Biden administration. Case in point: In November, federal banking agencies moved forward with plans to ease capital requirements designed to help megabanks absorb unexpected losses, Politico reported. This, in turn, would allow Wells Fargo, Goldman, and other financial behemoths to lend more and pay higher dividends. A more relaxed regulatory environment, Jim said, can also help reduce firms’ compliance costs. He added that deregulation makes it “very easy for banks to make a lot more money.” That’s not all: The current administration’s stance on antitrust matters can also benefit Wall Street’s investment banks. That’s crucial, in particular, for Goldman Sachs. A rebound in investment banking was a key reason why we started a position in the stock. If regulators approve more mergers and acquisitions, it will mean more business for Goldman Sachs. Wells Fargo also has a dealmaking business, albeit much smaller than Goldman’s. However, looser rules also mean additional risk. The capital minimums that Trump regulators are trying to roll back were established after the Great Financial Crisis of 2007-2008 to mitigate the risk of insolvency for the nation’s largest banks. Additionally, the government’s antitrust laws were designed to curb monopolistic behavior and prevent price-fixing by dominant firms. Both are intended to protect U.S. consumers. WFC GS YTD mountain Goldman Sachs (GS), Wells Fargo (WFC) year-to-date performances That’s not enough to deter Wall Street analysts. On Monday, Barclays hiked Wells Fargo’s price target to $113 from $94 and raised Goldman Sachs’ to $1,048 from $850. Analysts, who reiterated their buy rating on both, pointed to Wells and Goldman as standouts in the group. “We believe the Money Centers (BAC, C, GS, JPM, MS, WFC) have more room to run given the favorable capital markets/regulatory backdrop and their economies of scale advantage,” the analysts wrote, who also forecasted double-digit earnings growth for the sector in 2026. It may seem tempting to buy Wells and Goldman on the potential for further upside. We urge members to stay patient. The Club’s not adding to either position ahead of earnings later this month. Financial stocks can be overly sensitive to quarterly results and post-earnings commentary from management. JPMorgan , for example, posted a better-than-expected earnings report in October. Still, shares declined nearly 2% that session on cautious remarks from CEO Jamie Dimon about the U.S. economy. Wells Fargo will release its fiscal fourth-quarter earnings report on Jan. 15. Goldman Sachs is set to post results the following session. (Jim Cramer’s Charitable Trust is long WFC, GS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
