NEW YORK ( TheStreet) -- The dismal year-to-date performance of JPMorgan Chase's ( JPM) stock underscores the case why you should invest in the bank now. A few years from now, you may be looking back at the killing you missed on JPMorgan Chase. The shares are bargain-priced right here, and you can add on the dips. Shares of the nation's second-largest bank by total assets -- running a close second to Bank of America ( BAC) as of June 30 -- closed at $32.30 Monday, for a 22% year-to-date decline. This compared to a 53% decline for shares of Bank of America, while Citigroup ( C) was down 44% to $24.49 and Wells Fargo ( WFC) was down 15% to $26.13. In comparison, the benchmark KBW Bank Index was down 28% year-to-date, closing Monday at 37.45.
JPMorgan Chase CEO Jamie Dimon
So JPMorgan's stock performance measures up decently against the industry's performance. With the largest banks looking at a very rough third-quarter for trading and capital markets revenue, along with lower fee income from the new rules lowering the interchange fees that banks charge merchants to process debit card purchases -- as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law by President Obama last July -- JPMorgan has seen a slew of analyst cuts to its earnings estimates and price targets. The consensus among analysts polled by FactSet is for JPMorgan to report third-quarter earnings of 96 cents a share, following EPS of $1.27 in the second quarter and $1.01 in the third quarter of 2010. Here are 5 reasons to buy JPMorgan Chase now:
5. The shares are cheap.
The shares trade for less than six times the consensus 2012 EPS estimate of $5.24, and for just a hair above the company's June 30 tangible book value of $31.52, according to SNL Financial.
4. The dividend ain't too shabby.
JPMorgan is paying a quarterly dividend of 25 cents a share, which translates to a not-too-shabby dividend yield of 3.10% based on Monday's market close. That dividend, being comfortably supported even by reduced earnings estimates, for a company trading just above book value, which has posted earnings in excess of the 25-cent payout for the past 12 quarters, seems very solid.