The Detroit-based bank is on the verge of becoming a powerhouse in the Midwest once its deal for TCF Financial closes in the second half of the year, and analysts are anticipating that it 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 other 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, but unlike the rest of the industry, Chemical Financial actually has 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 and trades at a slight premium to its tangible book value, which is the the company's value if it were to be liquidated, Cramer said. It sells for 9-times next year's earnings estimates, he added.
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