The stock price of JP Morgan Chase has been rising steadily over the past few years, as the bank continued to grow its share. The company’s return on investment in the past five years increased over 136%, while S&P 500 has grown by 108%.
JPM is now one of the most reliable bets on US markets. The company is not inexpensive, but there are indications that it has room for growth in the coming years.
JP Morgan’s growth continues
Some of the world’s most influential companies are headquartered in the United States. The recent CrowdStrike outage paralyzed global businesses, resulting in billions of dollar losses.
Fastly, an independent CDN, experienced a major outage a few year ago that affected businesses of all sizes.
Other critical firms like Microsoft, Amazon and Google are also based in the US. The world would become a very difficult place if these companies suffered an outage.
JP Morgan Chase is another important company for the US economy and global economic growth. The biggest bank by assets and market capitalization is JP Morgan Chase. It reported that its assets totaled about $4 trillion at the time of its latest results.
JP Morgan has several business segments, including consumer and community banking; corporate and Investment banking; commercial banking and asset and Wealth Management Banking.
The company’s operations touch the lives of millions of Americans. In its consumer division, for example, it offers ordinary consumers banking products like credit cards, loans, and other financial services.
JPMorgan’s wealth management and asset management has assets of over $3.4 trillion, while the total deposits from its customers have increased to $2.4 trillion.
JPMorgan’s business has been growing both organically as well through acquisitions. Bear Sterns was acquired in 2008, and First Republic 2023 at bargain prices when they were nearing their end. Also, it bought Washington Mutual and Chase Manhattan.
JPMorgan profits and growth
JPMorgan Chase has grown to be the largest bank in America. The total revenue rose to $146 billion by 2023, up from $110 billion.
The company’s size has helped to make it a very profitable business. Its net profit has increased from more than $36 billion up to $50 billion.
JPMorgan Chase’s most recent results showed how well it was performing. The company’s net income increased to $18.1 billion, while revenue grew to $51 Billion. Over $3.8 billion was spent on repurchasing stock, and over $3.3 billion went to dividends.
JPMorgan is a better bank than other American banks thanks to Jamie Dimon’s fortress-like balance sheet. CET Capital is higher at 15.3% than the average bank. Companies like Bank of America and Wells Fargo have ratios of under 14.
CET1 is a ratio that measures a bank’s stability and financial strength. The CET1 ratio is the core capital of a company compared to its risk-weighted asset. Its financial strength is what makes it the most stable bank in the US.
JPMorgan does not trade at an expensive price as its forward Price-to-Book ratio is 1.92. This is higher than the median for this sector of 1.22. The price-to earnings ratio is 12.40, which is less than the median for this sector of 13.24.
It is a safe company with a dividend yield of 2.07% and a payout rate less than 25 %. It has also continued to decrease the number of shares outstanding from more than 2.92 billion by 2023, to 2,85 billion today. This trend is expected to continue.
JP Morgan Stock Price Analysis
JPM’s share price is shown on the daily chart to have done very well. The price has gone from $96.95 to $225 in just 2022. Stock has now risen above key resistance at $218. Its highest swing was in July, and it is at its highest level ever.
JPMorgan is above the moving averages and both the MACD (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are pointing upwards. This means that JPMorgan’s momentum has increased.
Bulls will continue to target $250 as the main resistance level in order to drive the price higher.
JPMorgan’s stock is volatile, but the most important thing to consider when evaluating it is its performance in 5 years or 1 year. You should instead look at the stock in terms of its future 50-years. It is likely that the company will still be around and its business will grow much larger than today.
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