With $3.4 trillion in total assets, JPMorgan Chase (JPM) is the largest bank in the U.S. and the fifth-largest bank in the world. Valued at $580.39 billion by market cap, it is well-known for its comprehensive investment banking, financial services, asset management, and commercial banking services. Headquartered in New York, it has operations in over 100 countries and serves a wide range of customers, from individual consumers to huge organizations and governments.
Shares of this global banking powerhouse have outperformed the broader market considerably over the past year. JPM has gained 50.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.9%. In 2024 alone, JPM stock is up 19%, surpassing the SPX’s 11.1% rise on a YTD basis.
Zooming in further, JPM’s outperformance looks more pronounced compared to Financial Select Sector SPDR Fund (XLF). JPM has comfortably outperformed the exchange-traded fund’s 12.2% YTD returns.
JPMorgan's first-quarter results, announced on April 12, fell short of expectations due to economic challenges. CEO Jamie Dimon pointed to factors such as reduced deposit margins and decreasing deposit balances in consumer banking as significant reasons for the weak performance. The stock declined 6.5% on the earnings release day but recovered after a few sessions.
For the current fiscal year, ending in December 2024, analysts expect JPM’s EPS to decline by 3.5% year over year to $16.22 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 24 analysts covering JPM stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buys,” one “Moderate Buy,” and six “Holds.”
This configuration is slightly bullish compared to when 25 analysts covered the stock three months ago, and the consensus rating was “Moderate Buy.”
Recently, Barclays analyst Jason Goldberg maintained a “Buy” rating on JPMorgan and set a price target of $212, which indicates a 4.7% upside from the current levels.
While JPM is currently trading at a premium to the mean price target of $200.04, the Street-high price target of $227 suggests an upside potential of 12.1%.
On the date of publication, Rashmi Kumari 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.
