This Day On The Street
Continue to site right-arrow
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!

JPMorgan Chase Wins Again

Stocks in this article: JPM KEY I:BKX

Later on Wednesday the minutes of the last FOMC meeting on April 30 and May 1 were released, indicating that the committee as a whole might lean toward curtailing asset purchases more quickly than Bernanke's comments indicated:

"A number of participants expressed willingness to adjust the flow of purchases downward as early as the June meeting if the economic information received by that time showed evidence of sufficiently strong and sustained growth; however, views differed about what evidence would be necessary and the likelihood of that outcome," according to the minutes.

The KBW Bank Index (I:BKX) was down 1% to close at 60.91.

JPMorgan Chase

Shares of JPMorgan have returned 24% this year, following a 36% return during 2012. The shares trade for 9.0 times the consensus 2014 earnings estimate of $5.94 a share, among analysts polled by Thomson Reuters. This is the cheapest forward price-to-earnings valuation among the "big six" U.S. banks:

  • Citigroup's (C) shares on Wednesday closed at $50.99 and traded for 9.6 times the consensus 2014 EPS estimate of $5.32.
  • Morgan Stanley (MS) closed at $24.71 and traded for 9.7 times the consensus 2014 EPS estimate of $2.54.
  • Shares of Bank of America (BAC) closed at $13.30 and traded for 10.3 times the consensus 2014 EPS estimate of $1.29.
  • Wells Fargo (WFC) closed at $40.11 and traded for 10.3 times the consensus 2014 EPS estimate of $3.90.
  • Goldman Sachs (GS) closed at $159.41 and traded for 10.4 times the consensus 2014 EPS estimate of $15.27.

With Dimon successfully shrugging off the attempt by some shareholders to split his dual roles as JPMorgan's CEO and chairman of the board of directors, Sterne Agee analyst Todd Hagerman wrote in a note to clients on Tuesday that "the incremental headline risk associated with a potential management re-shuffling should subside, with an increased investor focus on the company's otherwise solid operating results."

Hagerman rates JPMorgan Chase a "buy," with a price target of $54.00.

KBW analyst Christopher Mutascio on Wednesday reiterated his "outperform" rating for JPMorgan Chase, while raising his price target for the shares to $58 from $54.

"Our original target price of $54 was on the conservative side," Mutascio wrote in a note to clients, "representing less than 9.5x our 2014 EPS estimate of $5.80, as we were concerned about the lingering impact the London Whale incident would have on the company's P/E multiple. But, with the market willing to put a P/E multiple of 12.0x on names like KeyCorp (KEY) , we don't think it is unreasonable for JPM to trade at 10.0x -- which is the low end of our large cap banks' historical range of 10.0x-12.0x."

JPM Chart JPM data by YCharts

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

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
2 of 2

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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