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New York-based JPMorgan Chase & Co. (JPM) is renowned as a leading global financial services firm with $4.1 trillion in assets and $337 billion in stockholders’ equity as of March 31, 2024. Valued at $565.46 billion by market cap, the firm provides investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management services.
Companies worth $200 billion or more are called “mega-cap stocks.” JPM rightly fits that description, reflecting its substantial size, stability, and influence in the banking industry. JPM is the highest-ranked U.S. bank by market cap in the S&P 500 Index ($SPX).
The banking behemoth has fallen 4.4% from its 52-week high of $205.88, which it hit on May 20. Shares of JPM are up 3.9% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 4.9% gains over the same time frame.
Longer term, JPM shares rose 41.3% over the past year, and in 2024, the stock is up 15.8%. By contrast, the SPX is up 12.2% on a YTD basis and 25% over the past 52 weeks.
To confirm the bullish price trend, JPM has been trading above its 50-day moving average since early May and above its 200-day moving average since early November 2023.
On May 20, JPM shares fell more than 4% after CEO Jamie Dimon said that the bank would not repurchase much stock at “these prices.”
On Apr. 12, JPM shares fell more than 5% after the bank reported its Q1 results. The bank reported revenue and EPS of $41.93 billion and $4.44, respectively, surpassing the consensus estimates of $38.50 billion and $3.82. However, the bank warned of an “uncertain” year ahead amid geopolitical tensions and persistent inflationary pressures. The bank forecasted full-year net interest income of $90 billion, below the consensus estimate of $90.72 billion.
To emphasize the stock’s performance, top rival Bank of America Corporation (BAC) has underperformed JPM with 35.8% gains over the past 52 weeks. However, BAC’s 17.9% returns on a YTD basis have outshined JPM’s gains over this period.
Despite its recent underperformance compared to the SPX, analysts are optimistic about JPM’s prospects. The stock has a consensus rating of “Strong Buy” from the 24 analysts covering it, and the mean price target of $205.25 is a 4.2% premium to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
