JPMorgan’s stock (NYSE: JPM) has seen a strong gain of approximately 17% YTD, outperforming the S&P 500, which rose 14% over the same period. However, JPMorgan’s peer, Citigroup (NYSE: C), is up 20% YTD. Currently, JPM stock is trading 4% below its fair value of $208, according to Trefis’ estimate. The stock has shown impressive performance over the last three years, with returns of 28% in 2021, -13% in 2022, and 28% in 2023, consistently outperforming the S&P 500.
The bank exceeded street estimates in the first quarter of 2024, with net revenues of $41.9 billion, up 9% y-o-y. This growth was primarily driven by a 124% increase in corporate revenues and a moderate rise in other segments. Net interest income, which contributes around 60% of the top line, improved by 11% y-o-y. However, the bank saw a rise in total noninterest expenses, offsetting the decrease in provisions for credit losses. The net income rose by 6% y-o-y to $13.4 billion.
In FY 2023, JPMorgan’s top-line grew 23% y-o-y to $158.1 billion, driven by a 34% jump in net interest income and an 11% rise in noninterest revenues. Despite an increase in provisions for credit losses, the net income was $49.6 billion, up 32% y-o-y. For Q2, consensus estimates for revenues and earnings are $40.99 billion and $4.40 respectively. Overall, JPMorgan’s revenues are expected to reach $165.8 billion in FY 2024, with a slight dip in adjusted net income margin resulting in an annual GAAP EPS of $16.42 and a valuation of $208.
Looking ahead, JPMorgan’s strong performance is expected to continue in the coming quarters. The bank has consistently outperformed the S&P 500 in recent years, despite the challenging macroeconomic environment. The Trefis High Quality Portfolio, with a collection of 30 stocks, has also outperformed the benchmark index each year over the same period. With the current uncertain market conditions, driven by high oil prices and elevated interest rates, investors are keeping a close eye on JPMorgan’s stock and its potential for further growth.
Overall, JPMorgan’s stock has shown resilience and growth in a volatile market environment, reflecting the strength of its business model and management team. With solid financial performance and strong earnings in recent quarters, the bank is well-positioned to navigate the challenges ahead and continue delivering value to its shareholders. As investors assess the stock’s valuation and growth potential, JPMorgan remains a key player in the financial sector and a stock to watch in the coming months.
