American megabank JPMorgan Chase (NYSE: JPM )
has spent a great deal of time and money trying to patch up credit,
legal, and business problems -- many of which were self-inflicted. While JPMorgan emerged from the banking crisis with better capital and a stronger business than Citigroup (NYSE: C ) or Bank of America (NYSE: BAC )
, the shares have actually underperformed those peers over the last two
years as investors have been more intrigued by the self-improvement
potential of Citigroup and Bank of America than the stronger underlying
operating performance of JPMorgan.
Looking out, though, JPMorgan may be the better investment. Not only
is the company a very strong player in trading and investment banking,
it's near the top of the charts in mortgage lending, card lending, and
retail lending, as well as sporting a large branch footprint. With the possibility of double-digit cash earnings and ongoing
dividends hikes (and/or buybacks), JPMorgan looks more than 10%
undervalued today.
Read the full article here:
JPMorgan Chase & Co. Is Ready to Go Back to Business As Usual
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