Once you reach the top, where else is there to go? In the case of JPMorgan (JPM), while I believe this is already the best bank in the country (and quite possibly the world), I still see multiple attractive paths for future growth. Of course there will be competition, from well-run large banks like Bank of America (BAC) and PNC Financial (PNC) among others, as well as up-and-coming fin-techs, but JPMorgan has a great starting position and a deep bench of management talent.
These shares have basically tracked the larger bank index over the last three months, and modestly underperformed the S&P 500. I do see a near-term “value trap” risk for banks given uncertain rate prospects and weak loan growth, but I’m not concerned about the longer-term picture. With the shares still offering high single-digit long-term return potential on around 4% long-term core earnings growth, I think this is at least a solid hold, if not a name still worth consideration from longer-term buy-and-hold investors.
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