12-Month Net Income Growth: 73%
Quarterly Operating Profit Margin: 44%
Cash Flow Multiple: 31 (52% peer premium)
Analysts' Median Target: $52.29
3-Year Dividend Growth: -48%
Dividend Yield: 0.5%
Payout Ratio: 6%
2011 Catalyst: In 2010, JPMorgan suffered along with other financials. The industry group has been the third-worst performing among S&P 500 components, narrowly beating health care and utility stocks. But an improving credit environment, with fewer foreclosures and debt defaults, will translate to fewer loss reserves and greater profitability in 2010. Divestiture of principal-strategies is a concern. Still, at 8.7 times forward earnings, a 27% industry discount, JPMorgan is too cheap to pass up. Net charge-offs and delinquencies in its card business are rapidly declining. The bank's dividend is poised to rebound as the economy gains steam. Bullish Scenario: Barclays predicts that JPMorgan's stock will advance 45% to $60. Bearish Scenario: FBR Capital Markets expects the shares to gain 9% to $45.