I've been bullish on JPMorgan (JPM) for some time, and the bank has outperformed its peer group not only over the last three months and the last 12 months, but over longer periods as well. Simply put, I believe JPMorgan has established a strong case that it is one of the best-run banks in the world, and ongoing investments in areas like technology, marketing, and organic expansion (new branches/loan offices) should continue to generate strong long-term returns for the bank.
While banks didn't have a great 2020 overall, they ended strong, with better than 33% appreciation in the last three months. JPMorgan has participated in this rising tide, and I no longer believe that banks (on the whole) offer outsized returns relative to the risk. I continue to believe that JPMorgan is a good stock to own in the space, and I believe the long-term returns are still attractive (in the very high single-digits), but I no longer view this stock or this sector as materially overlooked or beaten down.
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JPMorgan Still A Best-In-Class Pick, But Bank Valuations Have Improved Significantly
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