This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Big Banks: Post-Election Bloody Aftermath Losers


Shares of JPMorgan Chase (JPM) declined 6% on Wednesday to close at $40.46. The shares have now returned 25% year-to-date, following a 20% decline during 2011.

The shares trade for 1.1 times tangible book value, according to Thomson Reuters Bank Insight, and for eight times the consensus 2013 EPS estimate of $5.32.

JPMorgan's shares already have an attractive dividend yield of 2.97%, based on a quarterly payout of 30 cents, but the company's $15 billion common stock buyback plan was suspended in May, after CEO James Dimon announced that the company was facing major losses over the hedging activity of its Chief Investment Office. The company still showed a second-quarter profit of $5.0 billion, or $1.21 a share, despite $4.4 billion in hedge trading losses, followed by record earnings of $5.7 billion, or $1.40 a share during the third quarter.

Despite the second-quarter trading turmoil, JP Morgan Chase has been a good earnings performer, with operating returns on average assets (ROA) improving steadily from 0.76% to 1.01% over the past five quarters, according to Thomson Reuters Bank Insight.

Dimon has indicated that he expects JPMorgan to resume share buybacks during 2013. O'Connor expects JPMorgan's dividend payout to increase to $5.567 billion in 2013 from $4.656 billion in 2012, with the stock's "implied yield" climbing to 3.3%. The analyst said that "we believe expectations are too high for JPM in particular," for the total return of capital during 2013, and he doesn't expect JPMorgan to resume common share buybacks in next year.

JPM ChartJPM data by YCharts

Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.

4 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs