JPMorgan Chase & Co. today
JPMorgan Chase & Co
As of 11:52 a.m. ET
- 52 week range
- $164.30
▼
$254.31
- Dividend yield
- 1.99%
- P/E ratio
- 14.00
- Price target
- $245.83
JPMorgan Chase & Co New York Stock Exchange: JPM The stock has risen rapidly and is on track to continue this trend in 2025. Not only were Q4 2024 results strong, but the driving conditions for bank results remain in place and are likely to remain so through the end of the year. Among the driving forces are rising long-term interest rates and waning expectations for Fed rate cuts this year. In the best case scenario, the Fed would deliver a single 25 basis point cut by the end of the year, keeping the average interest rate above 4% through the end of the year, which is 50 basis points or more above expectations at the beginning of the reporting period. The result is that high interest rates lead to strong interest income, and core banking is also strong.
Strong quarter for JPMorgan supported by its market and asset management businesses
JPMorgan Chase & Co. had a strong quarter, beating the analyst consensus reported by MarketBeat by wide margins due to strength in all three operating segments. Net revenue of $43.78 billion rose 13.4% and beat consensus by 520 basis points. The investment banking and asset management businesses were the strongest, with fees up 49% and assets under management up 18%. Other metrics include a 21% increase in market revenue and increased deposits. The consumer side saw a decline in deposits, but this decline was offset by a 14% increase in investment assets. CEO Jamie Dimon says consumer spending remains strong, as evidenced by a 1% increase in loans and an 8% increase in card volume.
Provisions for credit losses raised a red flag but did not change the outlook for this year. The company recorded a net increase in credit loss provisions, including net charges, of $2.4 billion, an increase of approximately 10% compared to the prior year. This suggests a consumer crack, but the increase is in line with seasonal trends, collections remain low, and total allocations are down. Fees may remain high in 2025, but they are offset by strong labor markets, rising wages, and improving consumer sentiment, and are unlikely to constitute a significant decline. Regarding the bottom line, GAAP earnings rose 60% year over year and beat consensus by 1,700 basis points.
JPMorgan guidance fuels positive analyst sentiment
Guidance for 2025 is equally strong. The company expected net investment income to reach $94 billion, or approximately 300 basis points higher than expected. National Insurance guidance is sufficient to improve the outlook, and strength can be expected across all sectors.
JPMorgan Chase & Co. Dividend Payments
- Dividend yield
- 1.99%
- Annual profits
- $5.00
- Increasing track record profits
- 14 years old
- Annual earnings growth for 3 years
- 7.53%
- Dividend distribution ratio
- 27.82%
- Upcoming dividend payment
- January 31
JPM Dividend Date
The news is likely to prompt analysts to increase their revenue and earnings targets and extend the positive stock price revision trend. As it stands, the consensus assumes that the stock’s value is fairly close to its pre-issue level, but the revision direction is what matters. Latest estimates have this stock trading at $300, or roughly 35% upside.
Return on capital will be among the drivers for this stock in 2025. The company’s financial position remains as strong as ever, with Tier 1 capital ratios above minimum requirements and its cash position flowing.
Balance sheet highlights include an 11% increase in book value and a 17% return on equity.
The bottom line is that healthy dividends are likely to increase by another significant amount in 2025, and buybacks will be significant.
Stock buybacks netted $4 billion worth of shares, or about 0.5% of shares, during the quarter and are expected to continue at a similar pace this year.
JPMorgan Chase stock is in a state of secular update
JPMorgan Chase’s stock price has been in a state of secular upgrading for more than two years as its organic growth doubled and accelerated through asset acquisitions in 2023. The stock price is up more than 140% since it bottomed in 2022 and could quickly rise by another double-digit to Three-digit amount. The technical signal is strong. The market is forming a bullish flag pattern, indicating a continuation of the trend this year. Simple goals depend on the size of the flagpole; The only question is the base of the flagpole. Using the $175 level as a starting point, this stock could advance another $75, assuming new highs are set.
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