10 Best Financial Stocks To Buy According to Hedge Funds

4. JPMorgan Chase & Co. (NYSE:JPM

Number of Hedge Fund Holders: 105

One of the Best Financial Stocks JPMorgan Chase & Co. (NYSE:JPM), with assets of around $4.1 trillion, is one of the biggest and most complex financial firms in the US. It is divided into four key segments: consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management. The company is regulated in many countries where it conducts business.

JPMorgan Chase & Co. (NYSE:JPM) is perhaps the most dominant bank in the United States, with leading franchises in investment banking, commercial banking, credit cards, retail banking, and asset and wealth management. Though few other businesses have been able to implement a similar approach, the bank’s combination of scale, diversity, and careful risk control is a straightforward route to competitive advantage. Although even the most effectively managed banks occasionally make errors, the business has appeared to be able to put everything together more effectively and with fewer mistakes than its competitors.

JPMorgan Chase & Co. (NYSE:JPM)’s Q3 of 2024 revenue increased by 6% year on year to $43.3 billion, led by a rise of 31% YoY in investment banking fees, a 27% YoY increase in equity market revenue, and a 15% YoY increase in asset management fees. While assets under management increased by 23% to $3.9 trillion, consumer card loans increased by 11%. The firm maintained its top spot in retail deposit share for four years in a row. Higher interest rates and the expansion of loans drove the firm’s Q3 2024 net interest income, which increased 30% year over year to $22.9 billion.

Glenn Schorr, an analyst at Evercore ISI, increased his price target for JPMorgan Chase & Co. (NYSE:JPM) from $238 to $264 on January 2, 2025, and maintained his Outperform rating for the company’s shares. The analyst notes that after a “pretty strong” September and October, investment banking activity levels continued to decline into December, and that equity markets sold off by roughly 2% in December in “a post-post-election breather driven largely by the realization” that rate cuts might not be as imminent as thought.

Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company among the funds in Insider Monkey’s database. It owns 16.78 million shares worth $3.54 billion as of Q3.