Background: J.P. Morgan Chase & Co. is a leading global financial services firm. The firm is a leader in investment banking, asset management, private banking, private equity, custody and transaction services and retail and middle market financial services. A component of the Dow Jones Industrial Average, JPMorgan Chase is headquartered in New York and serves more than 30 million consumer customers and the world's most prominent corporate, institutional and government clients.
52-Week Range: $30.42 to $46.49Book Value: $50.18 Price-to-Book: 0.8 Earnings Payout Percentage: 23%
This stock currently has an annualized dividend of $1.2, yielding 2.9%. Goldman Sachs (GS) and JPMorgan Chase are my two favorite investment banks. Both are now considered "banks" after the financial meltdown, but in the long run, I believe investment banking, trading, and big money positions will drive earnings for both companies. More than half the analysts covering JPMorgan rate it a buy (including strong buys). Shares gained more than 22% in the last 52 weeks, and the average analyst target price is $47.38. I don't believe the price target is out of line, and before the sizable trading loss in London, shares breached $27. $50 is always tough to get over because of the "round number" influence, but above $50 is a relatively easy leg up from here in 2013. The last reported short interest made up just 1.3% of float, which means short-sellers aren't betting much that this stock will go down. JPM Payout Ratio TTM data by YCharts