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NYSE:JPM

JP Morgan Chase & Co (JPM)

325.75
+0.53 (0.16%)
as of Jun 18, 2026, 11:46:26 pm Market Open.
308 watching
0
TOP PICK
They just released Q4 2019 earnings, which were $36 billion -- up 12%. Revenue was up 6%. They have transactions with half the US population. A real banking conglomerate. They are spending a lot on technology. A good defensive holding. Yield 2.63% (Analysts’ price target is $139.27)
COMMENT

BAC vs. JPM Driving US banks is a strong economy and flat yield curve. Unlike last year, bank movement now will be on a valuation basis. JPM trades at a 50% premium to book value, and BAC at book value, but Citibank (which he owns) trades at 70% book value and is narrowing that gap. Citi is his choice.

BUY
Long owned this. A well-run company that does all the right things. Today's earnings were tremendous. He'll own this forever, and he bets the US economy will do well. This is a great compounder.
BUY

JPM vs. BAC Both are first-class banks. He owns JPM which trades at a much higher valuation than BAC. Both are tops in their business lines. For the next 5-10 years they'll be in a sweet spot of reducing costs with few regulatory issues to deal with. They'll use tech to drive their business, an advantage for larger banks who can afford that. They will do some small acquisitions. They should be trading at higher multiples. Cash flow allows them to raise dividends and buyback shares. Their payout ratios are much lower than those of Canadian banks.

HOLD
He went all in on US banks when Trump was elected. After last year they traced back. He still has positions in two others but there is nothing wrong with this one.
COMMENT
You want to minimize correlation risk so he would only hold one if you want a US bank. If you want more financials, you should diversify by region.
DON'T BUY
When you compare the banks, JPM is twice as expensive as his top pick. JP Morgan is a leader and a bellwether. As an investor, you're concerned with the fundamentals and quality of the company, as well as the price. That creates the value equation, and it's not as strong for JPM.
PAST TOP PICK
(A Top Pick Dec 13/18, Up 33%) A well-run company that he still owns. Of all the banks, it’s starting to look rich but it is a premier company that continues to grow earnings. You can continue to own and buy it. We should continue to see dividend growth and steeper earning growth. A solid long term holding.
HOLD
The financial services group looks interesting and he is big into the space. Repricing of commissions will be challenging and it hampers SCHW's margins. If you think the yield curve steepens, this will help them. He would continue to hold, but there are others that he prefers like JPM.
TOP PICK
After the financial crisis in 2008, they skated through it all. Then they invested like crazy, putting $10 billion into technology. It trades at only 1.2 times book value. They are generating 13% return on capital with dividend growth and they have been buying their own shares. It has 2-3 years of a good run yet to go. Yield 2.77% (Analysts’ price target is $125.42)
TOP PICK
Low rates are hurting a bit. Great company. Has all the pieces: commercial, personal, investment, asset management. Extremely well run. Dividend increases. US consumer is in a great space right now. Huge cash machine. Yield is 2.77%. (Analysts’ price target is $125.29)
TOP PICK
Sell put JPM Sell 130 put for cost of -$11.55. If JPM is > $130 by Sept. 2021, the puts expire worthless. If JPM is < $130 by Sept. 2021, then buy JPM at $130 with a -$11.55 premium.
HOLD
It is probably the best run bank in the US. It is trading at a premium valuation. The sector is reasonably valued. But this is such a well managed company.
HOLD
It's near its all-time high. He expects this to lead if the financials get going. He's holding on though it hasn't done much in the last 18 months.
BUY
North American banks have gone sideways, including JPM. JPM has been rangebound since early 2018. It tends to bounce off $110 and hits a ceiling of $120. That's one approach. Another approach is to see if it breaks-out above $120 and buy it then.
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