5. JPMorgan Chase
(JPM - Get Report)
closed at $31.89 Friday, declining 23% year-to-date. Based on a 25-cent quarterly payout, the shares have a dividend yield of 3.14%. Based on the mean price target of $45.88 among analysts polled by FactSet, the shares have 44% upside potential.
JPMorgan stands out among the largest U.S. banks with that generous dividend payout, and following the next round of Federal Reserve
, investors are hoping for an increased return of capital, with a higher dividend and/or share buybacks.
for discussion of the company's third-quarter results.
Credit Suisse analyst Moshe Orenbuch on Monday said that JPMorgan was one of his firm's "top picks" among bank stocks for 2012, "due to strength and stability of [the company's] senior leadership team and strong balance sheet." Orenbuch sees "increased capital deployment activities in the form of higher dividends and share buyback as a positive catalyst," and is well ahead of the consensus, with a $52 price target for the shares, which is "1.4 times forward tangible book value and 10.4 times earnings," which Credit Suisse estimates will be $5.00 a share in 2012.
Of course, there will still be some major headline risk, with implied volatility for the shares, in 2012. Orenbuch estimates that JPM subsidiary Chase Home Finance -- the third-largest mortgage loan servicer as of March 31, according to Credit Suisse, citing data supplied by
Inside Mortgage Finance
-- will pay between $2.8 billion and $4.6 billion, as part of a settlement between the largest servicers, the federal bank regulators, and the states' attorneys general.
The shares trade for 6.5 times the consensus 2012 EPS estimate of $4.88 among analysts polled by FactSet, and for just below times tangible book value, according to SNL Financial.
Out of 25 analysts covering JPMorgan Chase, 23 rate the shares a buy and two have neutral ratings.
Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for