We recently compiled a list of the 20 High Growth Mega Cap Stocks You Can Buy And Hold For Next 5 Years. In this article, we are going to take a look at where JPMorgan Chase & Co. (NYSE:JPM) stands against the other high growth mega cap stocks.
Exactly 5 years ago, the world struggled to deal with a black swan event: the COVID-19 pandemic. There was so much uncertainty that people didn’t even know if they’d be alive in the next few weeks, let alone figure out where the market was heading. Anyone who invested in the S&P 5 years ago would have gained 83%. If you had bought at the exact bottom, you’d have gained twice that amount.
What the above proves is that the present isn’t necessarily an indicator of what the future holds. All companies that had their workflows disrupted have recovered, some more than others. Some companies have strengthened their supply chains. Others have improved their work-from-home capabilities. Industries like airlines and restaurants have modified their business models to cater to the new dynamics.
These companies have been able to deal with the changing dynamics because of their financial strength and innovation. A company’s past performance and its finances give a good idea of whether it will be able to survive bad times. That’s why when we look at the best mega-cap stocks to hold for the next 5 years, we look at how well they have grown in the last 5 years.
To come up with our list of top 20 mega-cap stocks to hold for the next 5 years, we considered stocks with a market cap of at least $200 billion and a 5-year sales growth rate of at least 10%.
A group of business people discussing plans around a boardroom table adorned with a financial services company logo.
JPMorgan Chase & Co. (NYSE:JPM)
JPMorgan Chase & Co. (NYSE:JPM) is a financial services company that operates in Asset & Wealth Management, Consumer & Community Banking, and Commercial & Investment Bank segments. It provides deposit, cash management, auto loans, retirement products & services, financial solutions, and other products & services. The company has grown its revenue by 16.59% over the last 5 years.
The stock’s recent dip has made it attractive for long-term investors. It trades at a multiple just above 12 which coincides with the sector average, so the stock is by no means overvalued despite being near all-time highs. The strong Q4 performance has a lot to do with the multiple being so low. In the fourth quarter, the bank was able to keep its loan loss provisions low, decreasing 20% QoQ.
Just a few days ago, the bank announced that it was able to pull in $60 billion from clients in Latin America. After selling off all of the bank’s on-shore private banking business in the region, the company now only accepts clients with a minimum of $5 million. The fact that people continue to choose JPMorgan Chase & Co. (NYSE:JPM) speaks volumes of its reputation. While a blowout quarter like the one just ended is hard to repeat, the bank should be able to sustain moderate growth going forward as all its business segments continue to show little weakness.
Overall JPM ranks 16th on our list of the high growth mega cap stocks you can buy and hold for the next 5 years. While we acknowledge the potential of JPM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
