#1 - JPMorgan Chase (NYSE:JPM)
If you’re looking for a secure, cash rich company it’s always good to look at JPMorgan Chase (NYSE:JPM). Shares of the banking giant are down 31% in 2022 despite the Federal Reserve’s aggressive pace of interest rate hikes that are likely to continue into 2023.
The thought is that demand for lending will dry up or companies will not meet more stringent lending requirements. And that means banks will have less revenue to offset having to pay large depositors higher interest.
That may be true, but if you’re looking for companies with ample cash reserves and the knowledge to deploy that cash for shareholder value, you’ll want to consider JPMorgan. The company posted $1.65 billion in free cash flow in the second quarter. That was a 20% year-over-year (YOY) decline. But for the first two quarters, FCF has increased by 185%.
And JPM stock is currently trading at a price-to-earnings (P/E) ratio of just 8.6 which is below the sector average and suggests that a lot of downside risk may already be priced in. The bank also has a generous 3.72% dividend yield and has been increasing its dividend for the last 10 years.
About JPMorgan Chase & Co.
JPMorgan Chase & Co is a financial holding company, which engages in the provision of financial and investment banking services. The firm offers a range of investment banking products and services in all capital markets, including advising on corporate strategy and structure, capital raising in equity and debt markets, risk management, market making in cash securities and derivative instruments, and brokerage and research.
More- Current Price
- $268.15
- Consensus Rating
- Hold
- Ratings Breakdown
- 10 Buy Ratings, 7 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $251.78 (6.1% Downside)
