10 Best Credit Card Stocks to Buy Now

3. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Investors: 111

As the most profitable bank in the United States, JPMorgan Chase & Co. (NYSE:JPM) is unquestionably one of the “Biggest Financial Firms in the World,” with a market capitalization of $619.19 billion.

It is divided into four main sections: asset and wealth management, corporate and investment banking, commercial banking, and consumer and community banking. JPMorgan is regulated in multiple countries where it conducts business.

It is also an industry leader in total assets, dominating both investment and commercial banking. Its standing has been strengthened by its profitable ventures into credit cards and auto loans, as well as thoughtful fintech initiatives.

Among credit card issuers, JPMorgan Chase (NYSE:JPM) is the biggest. Just last year, 10 million new accounts were opened, and there are currently over 150 million cards in use. Although it gave $239 billion in new credit to individuals in 2023, it amounted to only 10% of the $2.3 trillion it gave to all clients, including companies, non-governmental organizations, and the government itself.

It should be mentioned that the company anticipates a rise in the number of credit card defaults by customers. Last year, its provision for credit card losses grew by 80%, reaching $6 billion. Nevertheless, it is a financial giant, too big to fail due to its dominant position in the banking industry.

The financial firm is attracting the eye of analysts. Despite market headwinds, Piper Sandler maintained its Overweight rating and $230 price target for the US-based company, highlighting the bank’s capacity to outperform competitors. The company does not foresee any major changes to JPM’s outlook and commended the bank for its effective risk profile, leading profitability, and cautious prediction.

Deutsche Bank, on the other hand, downgraded the company from Buy to Hold but maintained its target price of $235. The firm recognizes JPM’s year-to-date performance, outstanding credit quality, and higher-than-expected net interest income, but it sees little room for further increase. Reacting to growing unemployment, major firms like JPMorgan anticipate that the Federal Reserve will cut interest rates in September.

Carillon Eagle Growth & Income Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its first quarter 2024 investor letter:

“JPMorgan Chase & Co. (NYSE:JPM) contributed positively to performance following solid financial results and positive guidance for the remainder of 2024. Moreover, growing chatter around rising capital markets activity likely contributed to the stock’s strong performance relative to other banks. Recall that JPMorgan has a robust capital markets franchise.”

Ken Fisher’s Fisher Asset Management is the largest shareholder in the company, with 12,740,431 shares worth $2.58 billion.