The good news/bad news about large banks is that not all that much really changes from quarter to quarter. Banks with strong underwriting practices and good market positions tend to maintain that from quarter to quarter, and the biggest changes are often external macro factors like rate changes. With JPMorgan Chase (NYSE:JPM), then, I can't really call it a surprise that the bank had a solid third quarter with strong outperformance in its trading business and more modest, but still meaningful, outperformance in its banking operations.
Very little has likewise changed with my valuation and sentiment. It sounds as though loan growth is still strong and rate increase expectations are modest, while credit quality seems okay. These shares are still a little undervalued, but cheaper stocks in the large bank sector — like BB&T (NYSE:BBT), Wells Fargo (NYSE:WFC), and PNC (NYSE:PNC) — do have something of a "cheap for a reason" element to them.
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JPMorgan Keeps On Doing What It Does