CNBC’s Jim Cramer on Friday said Chemical Financial, a regional bank with more than 0 locations, can be worth a buy.
The Detroit-based bank can be on the verge of becoming a powerhouse inside the Midwest once its deal for TCF Financial closes inside the second half of the year, as well as analysts are anticipating in which in which will be a boost on the company’s earnings, he said.
After climbing high off the announcement in January, the stock tumbled in March, along with additional banks, as long-term interest rates fell, Cramer said.
He took a deeper look at the stock after a viewer asked for his opinion on the firm in January.
“Of course, all the bank stocks are cheap here, although unlike the rest of the industry, Chemical Financial actually incorporates a catalyst, thanks to the upcoming TCF merger, which should create an enormous amount of value,” the “Mad Money” host said.
The security has rebounded in recent weeks as well as trades at a slight premium to its tangible book value, which can be the the company’s value if in which were to be liquidated, Cramer said. in which sells for 9-times next year’s earnings estimates, he added.
Cramer also did some homework on the stocks of Accelerate Diagnostics as well as Zix Corp.
Get his insight here