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Valued at a market cap of $752.5 billion, JPMorgan Chase & Co. (JPM) is a financial services company that serves millions of customers and many of the world’s most prominent corporate, institutional, and government clients daily. The New York-based company manages assets and investments, offers business advice and strategies, and provides innovative banking solutions and services.
This financial service provider’s shares have significantly outpaced the broader market over the past 52 weeks. JPM has rallied 52.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 20.9%. Moreover, the stock is up 11.3% on a YTD basis, compared to SPX’s 1.9% rise during the same time frame.
Zooming in further, JPMorgan’s outperformance becomes more evident when compared to the Financial Select Sector SPDR Fund’s (XLF) 31.5% return over the past 52 weeks and 6.1% gain on a YTD basis.
On Jan. 15, shares of JPM surged 2% after its better-than-expected Q4 earnings release. A massive 49% growth in investment banking fees and 21% higher trading revenue resulted in a 10.9% year-over-year rise in the company’s top line to $42.8 billion, which outpaced Wall Street’s expectations by a notable 4.4%. Moreover, its EPS advanced 58.2% from the year-ago quarter to $4.81 and easily topped the estimates by a whopping 19.4%, despite a rise in adjusted operating expenses.
However, its Net Interest Income (NII) declined 3% annually to $23.3 billion due to lower rates and deposit margin compression across the lines of business. Nevertheless, the overall strong results overshadowed this decline. The stock continued its upward momentum, reaching a 52-week high of $270.82 on Jan. 31.
For the current fiscal year, ending in December 2025, analysts expect JPM’s EPS to decline 2.1% year over year to $17.82. The company’s earnings surprise history is promising. It surpassed the Wall Street estimates in each of the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 13 “Strong Buy,” two “Moderate Buy,” eight “Hold,” and one “Strong Sell” rating.
This configuration is slightly more bullish than three months ago, with 12 analysts suggesting a “Strong Buy” rating.
On Jan. 15, Goldman Sachs maintained a “Buy” rating on JPMorgan and raised its price target to $295, which indicates a 10.6% potential upside from the current levels.
As of writing, the company is trading marginally above its mean price target of $266.65. The Street-high price target of $330 suggests an upside potential of 23.7%.
