This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

JPMorgan Is Analysts' Favorite Big Bank Stock for 2014

NEW YORK (TheStreet) -- JPMorgan Chase (JPM - Get Report) continues to command unwavering analyst support headed into 2014.

The bank is the favorite stock among analysts, according to rankings complied by Bloomberg. Thirty one of 41 analysts recommend the stock, while eight rate it "hold" and just two have a "sell" rating on the stock. That adds up to a rating of 4.4 out of five, according to Bloomberg's scoring system -- the best among its peers. The next best ranking goes to Citigroup (C) at 4.25, followed by Wells Fargo (WFC) at 3.88, Morgan Stanley (MS) at 3.68, Bank of America (BAC) at 3.45 and Goldman Sachs (GS) at 3.33.

Shares of JPMorgan were down 0.11% to $56.25 mid-Friday morning, having returned 32% this year. The shares trade for 1.5 times tangible book value, according to Thomson Reuters Bank Insight, 9.4 times the consensus 2014 earnings estimate of $6.01 a share and 8.9 times the consensus 2015 EPS estimate of $6.36.

Following three years of record earnings growth, JPMorgan will see an earnings decline this year, because of the third-quarter net loss, springing from $9.15 billion in provisions for litigation reserves.

During the fourth quarter, the company has entered into a landmark $13 billion settlement of residential mortgage-backed securities (RMBS) investigations and claims by the Justice Department and other government authorities, as well as a $4.5 billion RMBS settlement with a group of institutional investors.

JPMorgan on Dec. 4 was also hit with $109 million in fines by the European Commission for its role as one of the banks participating in "bilateral cartels relating to interest rate derivatives denominated in Japanese yen."

There were several media reports on Thursday that JPMorgan would pay more than $1 billion in penalties to the Justice Department to resolve a criminal inquiry into whether it provided sufficient warnings about Bernard Madoff, whose Ponzi scheme allegedly attracted suspicion among senior bank officials before it came to light five years ago.

S&P Capital IQ's Erik Oja, who reiterated his "strong buy" on the stock in a brief note published Thursday morning wrote that a settlement "would remove one more uncertainty over JPM."

A fourth-quarter litigation tab of at least $18.6 billion -- which for the most part was already reserved for, during previous quarters, may set a relatively clean plate for the bank during 2012.

The following chart shows the year-to-date performance of JPMorgan's stock against the KBW Bank Index (I:BKX) and the S&P 500 :

JPM Chart
data by YCharts

-- Written by Dan Freed in New York

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
JPM $59.54 -0.12%
AAPL $124.24 0.70%
FB $83.01 0.11%
GOOG $555.17 -0.65%
TSLA $190.41 -2.00%

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

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