"If you look at the fundamentals without the litigation charges, they are still producing about a 15% return on average tangible common equity, even backing out the loan loss reserve release," according to Mosby.

Another factor in the stock's strong performance is the quarterly dividend of 38 cents, which equates to a yield of 2.88%, based on Wednesday's closing price.

That dividend is not likely to be affected by JPMorgan's regulatory and legal mess, since it was approved in March by the Federal Reserve as part of the regulator's annual stress test process, which for the largest banks holds dividends to roughly 30% of earnings.

The dividend provides a $50 "floor" for the stock, according to Mosby, because at that point the yield would be 3%. The analyst rates JPMorgan a "buy," with a price target of $63.00.

"Over the next year, the downside risk is minimal, with a lot of upside potential, if they can get through this settlement without causing anymore heartburn," he says.

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 TheStreet.com 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.

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