4. JPMorgan Chase
Shares of JPMorgan Chase closed at $47.57 Friday, returning 10% this year, following a 36% return during 2012. The shares trade for 1.3 times tangible book value, and for 8.0 times the consensus 2014 EPS estimate of $5.97. The consensus 2013 EPS estimate is $5.52.
Following the completion of the Federal Reserve's 2013 bank stress tests, JPMorgan said on March 14 it would be required to "submit an additional capital plan by the end of the third quarter addressing the weaknesses identified in the Firm's capital planning processes." The good news for investors was that the company received the Fed's blessing to raise its quarterly dividend to 38 cents from 30 cents, and also to repurchase up to $6 billion in common shares through the first quarter of 2014.Based on Friday's closing price, the shares had a dividend yield of 3.20%. The company's first-quarter ROA was 0.99% and its return on average tangible common equity was an impressive 17.77%, according to Thomson Reuters Bank Insight. Please see TheStreet's earnings coverage for much more on JPMorgan Chase's first-quarter results and analysts' reaction. With bank regulators continuing to press JPMorgan and with the political target on the company's back, the shares may continue to be discounted for some time, despite solid overall earnings performance over the long term. Then again, the harsh scrutiny of the company could ultimately be a silver lining for investors, with JPMorgan Chase doing everything it can to improve its risk management. Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.
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