1. JPMorgan Chase & Co. (NYSE:JPM)
Forward P/E Ratio: 11.99
Earnings Growth This Year: 22.00%
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE:JPM) is one of the best stocks when it comes to large US banks. The market capitalization of $600.59 billion makes it the biggest bank in the United States. Moreover, it has a huge footprint demarcated by more than 5,100 branches throughout the country.
Relatively high interest rates for a long period can hamper the growth of any bank as it triggers stunted borrowing within the market. However, regardless of the interest rates staying high in the United States since the pandemic, the bank has done well to stay above analysts’ expectations. Its revenue for the second quarter of 2024 grew 22% year-over-year to reach $50.2 billion and the net income also improved 25% to more than $18.1 billion.
Analysts expect that if JPMorgan Chase & Co. (NYSE:JPM) has done well to outperform the top and bottom line expectations during the high interest rates, the recent Fed rate cuts will only boost its leading position in the country.
JPMorgan Chase & Co. (NYSE:JPM) has been transforming its internal banking operations by integrating generative AI into its day-to-day operations. Moreover, the company has also introduced a pay-by-face biometric solution for merchants throughout the country.
The bank also enjoys a strategic edge due to its diversified operations all of which are growing in terms of revenue and net income. Its commercial and investment bank (CIB) segment revenue rose 9% to $18 billion and delivered an 11% gain in net income. Asset and wealth management was also a success contributing around $5.3 billion to the revenue growth.
JPM was held by 111 hedge funds in Q2 2024 with total positions worth $6.98 billion. Fisher Asset Management is the top shareholder and his stakes in the bank are worth more than $2.5 billion.
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 potential of JPMorgan Chase & Co. (NYSE:JPM) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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