A Very Healthy Consumer And Strong Execution Boosting JPMorgan

Bank stocks really haven’t been in favor over the past year, as investors fret over the consequences of a reversal in the rate cycle (from tightening to easing), a likely increase in credit costs, and weaker loan growth. When it comes to JPMorgan (JPM), though, this bank’s exceptional execution continues to drive above-average results both in terms of financials and share price performance, with the stock up about 16% over the past year.

Spread pressures remain a real risk for JPMorgan, but healthy consumer metrics (including good unemployment and income numbers) help offset some of the risk. At the same time, management continues to look for growth opportunities in areas like private banking, asset management and payment technologies. JPMorgan shares still seem to have some upside, and I’m in no hurry to sell, but investors who want beefier prospective returns likely need to look elsewhere and trade off some quality for greater return prospects.

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A Very Healthy Consumer And Strong Execution Boosting JPMorgan