Sarah Ross
JPMorgan Chase (NYSE:JPM), the country's largest bank by assets and a major player in consumer banking, credit cards, investment banking and trading, has been drawing fresh attention after a strong second quarter earnings report pushed shares to new highs. The jpmorgan chase jpm story this summer is one of a bank firing on nearly every cylinder.
Shares traded at 341.10 on the latest session, down a modest 0.34% for the day, but that dip barely dents a run that has carried the stock to a 52 week high of 351.24, well above its 52 week low of 293.67. The bank now carries a market capitalization of 912.16 billion dollars.
| Price | 341.1 USD |
|---|---|
| Day change | -1.15 (-0.34%) |
| 52-week range | 293.67 – 351.24 |
| Market cap | $912.16B |
| P/E ratio | 16.3 |
| EPS (ttm) | 20.92 |
| Dividend yield | 1.76% |
| RSI (14) | 60.22 |
| Volume | 9,250,861 |
At a Glance
- Price: 341.10, down 0.34% on the day
- 52 week range: 293.67 to 351.24
- Market cap: 912.16 billion dollars
- P/E ratio: 16.3, dividend yield: 1.76%
- RSI: 60.22
Earnings Beat Fueled by Trading Desk
The bank's second quarter results, reported earlier this month, topped Wall Street forecasts by a wide margin. Revenue came in at 58.02 billion dollars, and earnings per share hit 7.70, far above the 5.85 consensus. Equities trading revenue jumped 86% amid choppy markets and heavier dealmaking activity, which more than made up for a slight shortfall in net interest income, the figure analysts watch to judge how rate policy is squeezing or padding lending margins.
Book Value and Dimon's Outlook
Tangible book value per share, a gauge of the bank's underlying net worth, climbed 10.8% year over year. CEO Jamie Dimon struck an upbeat note on the economy, pointing to capital investment and fiscal stimulus as forces still pushing growth forward. Shares initially spiked as much as 2.6% on the earnings news before settling to a 2% gain at 341.13.
Valuation, Momentum and Yield at JPMorgan Chase
The current price of 341.10 puts JPMorgan at a price to earnings ratio of 16.3, a level that reflects steady confidence in the bank's earnings power without pricing in runaway growth expectations. The dividend yield sits at 1.76%, modest but consistent with a company still plowing capital into trading desks, technology and its lending initiatives. An RSI of 60.22 signals the stock has upward momentum without yet looking overbought.
The bull case rests on trading strength, a rising tangible book value and a management team publicly bullish on fiscal tailwinds. The bear case centers on net interest income, which came in soft, raising questions about how a shifting rate environment might squeeze traditional lending profits even as trading revenue carries the quarter.
Quick Facts
- JPMorgan is up 4.8% since the start of the year
- A 1,000 dollar investment five years ago would now be worth about 2,199 dollars
- The stock has moved more than 5% in a single day only once over the past year
- Three months ago shares rose 3.6% on news of the
Frank Carr