1. JPMorgan Chase & Co. (NYSE:JPM)
Forward Price-to-Earnings Ratio: 12.15
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE:JPM) is the largest bank in the US, offering a range of financial products and services, including commercial banking, retail banking, investment banking, wealth management, and asset management. It’s known for its global reach, serving clients in various countries and industries. It’s also a major player in the financial markets, providing investment banking services, trading, and asset management.
The company’s revenue grew by 21.53% in Q2 2024 as compared to the year-ago period, driven largely by its Commercial and Investment Banking (CIB) division, which saw a remarkable 50% surge in investment banking fees. The commercial and investment banking segment grew by 9% year-over-year, and net income increased by 11%. Asset and wealth management contributed $5.3 billion to revenue growth. It expanded its partnership with Oracle to improve payments in treasury, trade, and commerce, and introduced new biometric payment solutions for merchants in the US, making it easier for buyers and sellers to use payments.
It’s using automation to improve internal tasks and customer experiences. In August, it launched an AI assistant to help ~60,000 employees complete tasks more efficiently. For customers, the company introduced a new facial payment solution for merchants in the US. In May, it also launched a new data management service for institutional investors to help them streamline their operations and access consistent data.
JPMorgan Chase & Co. (NYSE:JPM) has $4.1 trillion in assets and $3.6 trillion in assets under management. The company is expected to continue to be successful because of its cost advantages and strategic investments in growth. With its strong financial performance, size, and scale, it’s well-positioned for future success.
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.”
While we acknowledge the growth potential of JPMorgan Chase & Co. (NYSE:JPM), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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