JPMorgan Adds Another Quarter To Its Remarkable Performance Run

I’m sure the truly dedicated can find something to nitpick in JPMorgan’s (JPM) fourth-quarter results, but I view the quarter as a strong performance even against what has been a pretty remarkable run of quarters across the banking cycle. While the underlying health of the U.S. economy remains a concern (more on the corporate side now than the consumer), as does the ongoing impact of low rates, JPMorgan has shown it can adapt to the environment, and I still see meaningful opportunities for both organic growth and operating leverage.

The only issue now is that the Street is up to speed on this name; the 14% move in the shares since my last update (roughly double the underlying bank sector) has brought the stock to my fair value estimate, even after post-Q4 adjustments. There’s nothing wrong with owning one of the best of the best at fair value, though, and I won’t put it past JPMorgan management to deliver upside to my core long-term 3% underlying growth estimate.

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JPMorgan Adds Another Quarter To Its Remarkable Performance Run