#2 - JPMorgan Chase (NYSE:JPM)
Inflation is generally seen as a problem for banks because a significant portion of a bank’s revenue comes from interest on the loans they service. But inflation frequently leads to higher interest rates. And that can be highly profitable for a bank like JPMorgan Chase & Co. (NYSE: JPM).
The bank’s revenue and earnings are up year-over-year in 2024 despite year-over-year lending revenue being down in both its Consumer & Community Banking and Commercial & Investment Bank divisions. This should get a lift as the Federal Reserve lowers interest rates, even if the pace of those cuts is slower than first outlined.
Another bullish catalyst for JPM stock in 2025 comes in the form of less regulation, particularly the Basil III Endgame that JPMorgan CEO Jamie Dimon has spoken out against.
JPM stock has averaged a total return of around 20.5% over the past five years. That's above the S&P 500 and speaks to the bank’s ability to perform for its customers and its shareholders no matter what’s happening in the economy.
As of December 16, 2024, JPM stock appears to be trading at a discount to projected earnings. But analysts are raising their price targets for the stock.
About JPMorgan Chase & Co.
JPMorgan Chase & Co is a financial holding company, which engages in the provision of financial and investment banking services. It focuses on investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. It operates through the following segments: Consumer and Community Banking (CCB), Commercial and Investment Bank (CIB), Asset and Wealth Management (AWM), and Corporate.
More about JPMorgan Chase & Co.- Current Price
- $243.58
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $254.83 (4.6% Upside)
