JPMorgan, Citigroup Have Gains Ahead Says GuideStone Manager

Even though JPMorgan has strong business lines across the board, the bank still does not get the respect it deserves, said GuideStone Funds Vice President Ron Dugan. 'It’s a high quality company and yet it’s been trading at a discount relative to its peer group. It’s a well-run company,' said Dugan. 'Strong franchises whether it be in banking, investment banking, credit card areas. So we think there’s a lot of potential that’s still there to be unlocked.' Shares of JPMorgan are up 8% this year and the bank trades at a less-than-market multiple of 10.5 times 2016 earnings. Dugan’s GuideStone Value Equity Fund is flat year-to-date. 'With our Value Equity Fund, we look at companies that are trading below discount to their intrinsic value. We’re also looking for higher than expected growth relative to their peer group,' said Dugan. TheStreet's Gregg Greenberg has details from Chicago.