Why Jim Cramer is bullish on Goldman Sachs and Morgan Stanley

CNBC’s Jim Cramer praised Thursday. morgan stanley and goldman sachssuggesting the financial giant is worth more than the price it’s currently trading at.

“These aren’t temporary roller coaster companies. They’re granite, tungsten and even solid,” he said. “Yet they’re selling at a much lower multiple than Colgate or Procter & Gamble or the average stock price of the S&P 500. That’s a travesty.”

Morgan Stanley and Goldman Sachs released their quarterly reports on Thursday, successfully impressing Wall Street. Both banks’ performance was driven by strength in wealth management. Each company set new 52-week highs, with Morgan Stanley up 5.78% and Godman Sachs up 4.63%.

Mr. Kramer recalled the early days of his career when he applied for a job at Goldman Sachs and was repeatedly turned down. He explained how he was finally hired after many difficult efforts to get his foot in the door. Mr. Kramer said he managed to land a job offer from Goldman Sachs after impressing recruiters with his extensive stock knowledge, and had a pending bid from fellow firm Morgan Stanley.

Kramer said these banks have incredibly high standards. This means that even after Thursday’s rally, buyers should realize their stock is worth more than its current price.

Mr. Kramer said investment banks were “finally starting to reap the rewards,” suggesting the group’s gains would continue.

“We’ll let you know when it’s too late to buy, but we’re definitely not there yet,” he said.

Subscribe to CNBC Investing Club today to follow Jim Cramer’s every move in the markets.

Disclaimer CNBC Investing Club owns shares of Goldman Sachs.