JPMorgan Scratched, But Still In Fighting Trim

All good things come to an end, and JPMorgan Chase (JPM) saw its impressive string of 16 consecutive quarterly EPS beats come to an end in the fourth quarter of 2018. Even so, I’d argue the underlying trends in the business are better than sound, and JPM is well-placed to continue growing share in key areas like consumer banking, commercial banking, payments, and custody, while maintaining a strong position in its more volatile trading and i-banking businesses.

The market is already pricing banks like a recession is coming, and while I won’t say that has totally de-risked a potential recession in 2019 or 2020, it has established a more reasonable risk/reward outlook. If JPMorgan can meet my long-term expectations of low-to-mid single-digit core earnings growth, these shares should trade around $120 today.

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JPMorgan Scratched, But Still In Fighting Trim