Up another 10% from my last article and significantly outperforming peers like Wells Fargo (NYSE:WFC), Citi (NYSE:C), Bank of America (NYSE:BAC), and U.S. Bancorp (NYSE:USB) over the past year, there's not much I can complain about as a JPMorgan Chase (NYSE:JPM)
shareholder. Management is delivering on its stated objectives of
cutting expenses and strategically shrinking its balance sheet, while
continuing to pursue growth opportunities in asset management, cards,
and commercial/middle market banking.
The Street is pretty much up
to speed on this story; an argument could perhaps be made that some
still underestimate JPMorgan's ability to offset increased capital
requirements by optimizing its cost structure and/or redirecting capital
to less-heavily regulated businesses, but I think the shares are pretty
fairly valued. What's a bank stock investor to do, though? You can pay
up for growth if you like (Bank of the Ozarks (NASDAQ:OZRK) being my go-to example) or try a riskier story like Canadian Western (OTCPK:CBWBF), Itau Unibanco (NYSE:ITUB), or Popular (NASDAQ:BPOP),
or you can accept that banks like JPMorgan, Wells Fargo, and U.S.
Bancorp are priced to generate the sort of more modest returns that were
typical before things went nuts with the housing bubble, recession, and
recovery.
Read the full article here:
Greatness Recognized With JPMorgan Shares
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