JPMorgan Chase is one of the largest and most important banks in the United States and around the world.
In 2022, the G20 Financial Stability Board named the institution the most systemically important bank in the world. With a market capitalization of $407 billion, JPM stock is one of the 20 largest publicly traded companies in the US.
When investing in a financial institution that is so big and complicated, there are a lot of things to think about. But the basics of the company point to it being a good investment.
One reason is that JPM is trading at close to 12 times its earnings. A value that is below the average for the sector, which is 13.5x. Some fundamental investors might think that JPM is undervalued based on this price.
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Like the other companies on our list that have a strong base, JPM also pays dividends. Shareholders can expect to get a total payout of 2.78 % per year from the bank for owning its stock. But the company is not on the list of dividend aristocrats, which is made up of 65 stocks.
The good news for JPMorgan shareholders was that the company made money in the fourth quarter. The company did better than it did during the same time last year in almost every way and beat EPS by 15%.
Last quarter, sales increased by 5.64 percent year over year, and it’s possible that this trend will continue. Since rising interest rates are good for banks, the current economic situation is good for JPM. Strong profits and a fair price are both good signs that the bank could do well.