JPMorgan Chase & Co. Today
JPMorgan Chase & Co.
As of 11:16 am ET
- 52 week range
- $164.30
▼
$254.31
- Dividend yield
- 2.00%
- P/E ratio
- 13.94
- Target price
- $245.83
JPMorgan Chase & Co’s New York Stock Exchange: JPM The stock is rising quickly and will continue that trend into 2025. Not only were the fourth quarter 2024 results strong, but the conditions supporting bank results remain strong and are likely to remain so for the rest of the year. Driving forces include higher interest rates over longer periods and worsening prospects for Fed rate cuts this year. In a best-case scenario, the Fed would implement a single 25 basis point cut by year-end, keeping average rates above 4% for the rest of the year, a good 50 basis points or more above forecasts at the start of the reporting period. The takeaway is that higher interest rates provide robust interest income and the core banking business is also strong.
JPMorgan’s strong quarter underpinned by its market and asset management business
JPMorgan Chase & Co. delivered a strong quarter, beating analysts’ consensus estimates reported by MarketBeat by a wide margin, thanks to strength in all three operating segments. Net sales of $43.78 billion rose 13.4% and beat consensus estimates by 520 basis points. Investment banking and asset management businesses were the strongest, with fees up 49% and assets under management up 18%. Other indicators include a 21% increase in market earnings and an increase in deposits. In the consumer sector, deposits fell, but this decline was offset by an increase in investment assets by 14%. CEO Jamie Dimon says consumer spending remains strong, highlighted by a 1% increase in loans and an 8% increase in card volume.
Provisions for credit losses raised concerns but did not change the outlook for the year. The company recorded a net increase in provisions for credit losses, including net write-offs of $2.4 billion, up nearly 10% from the prior year. This represents a consumer breach, but the increase is in line with seasonal trends, write-offs remain low and overall reserves are down. Contributions may remain elevated in 2025, but they are offset by strong labor markets, rising wages and improving consumer sentiment and are unlikely to be a significant deterioration. On the net income side, GAAP earnings rose 60% year-over-year and beat consensus estimates by 1,700 basis points.
JPMorgan recommendations support positive analyst trends
The forecast for 2025 is equally strong. The company forecasts net investment income to reach $94 billion, nearly 300 basis points above consensus. NII’s forecast is enough to improve the outlook and strengthening can be expected across all segments.
JPMorgan Chase & Co. dividend payment
- Dividend yield
- 1.99%
- Annual dividends
- US$5.00
- Record dividend increase
- 14 years old
- Annual dividend growth for 3 years
- 7.53%
- Dividend payout ratio
- 27.82%
- Next dividend payment
- January 31
JPM Dividend History
The news is likely to prompt analysts to raise their revenue and earnings targets and extend the positive trend in share price revisions. As it stands, consensus suggests the stock is fairly priced near its pre-issue level, but the revision trend is what matters. At latest valuations, the company’s shares are trading at $300, which represents approximately 35% upside potential.
Return on capital will be one of the growth drivers for these stocks in 2025. The company’s financial position is as strong as ever, with Tier 1 capital ratios exceeding minimum requirements and its cash position is clean.
Balance sheet highlights include an 11% increase in book value and a 17% increase in return on equity.
The bottom line is that in 2025, healthy dividends will likely rise by another single digit amount, and share buybacks will be significant.
Share repurchases brought in $4 billion in the quarter, or about 0.5% of the stock, and are expected to continue at a similar pace this year.
JPMorgan Chase stock is on a long-term uptrend
JPMorgan Chase’s share price has been in a constant upward trend for more than two years, as its organic growth was compounded and accelerated by its 2023 asset acquisition. The share price is up more than 140% since bottoming in 2022 and could rise quickly. for another two- or three-digit amount. The technical signal is strong; The market is forming a bullish flag, signaling a continuation of the trend this year. Simple goals are based on the size of the flagpole; The only issue is the base of the flagpole. Using the $175 level as a starting point, this stock could rise another $75 if new highs are made.
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