I pointed out how cheap bank stock was a couple of years ago, and J.P Morgan is one of them. The stock is up over 100% since I wrote about the bank stocks and J.P Morgan is still a good stock. J.P Morgan is one of the best in the class with a Market Cap of $386,64 Billion.
Chairman and CEO Jamie Dimon is one of those who hate Bitcoin and said he will fire his own employees trying to trade Bitcoin. But Mr Dimon should take “data capitalism” seriously because it is about to change how business is done throughout the economy.
Information technology and artificial intelligence (AI) will change the way banks do business as we know it today. Just take a look at Alibaba and its new bank. Furthermore, J.P Morgan will also see more competition from corporations like Google, Apple and Samsung.
They will all change the way we pay, but they will also change the financial business. Just take a look at Goldman Sachs Group and how they changed to their information technology platform in addition to their commercial banking.
JPM took a $2,4 billion hit to earnings due to the impact of the Tax Cuts and Jobs Act and when one adds this back into the bank`s earnings, the return on tangible common equity, the bank produced a 13,6 percent result.
Economic growth is up 3% for the last quarters in a row and business investments has increased og only that should lead to increase in demand for working capital. That should lead to banks like JPM will lend more and receive more deposits.
On top of that you have the Fed
s policy and rising yields. Its like the stock market; it won`t go straight up of course, but in the long run, all this cases are profitable for the banking sector, and JPM is one of them.
Next target for the stock is $120, and slow growth is expected while much of the major run last two years is based on future growth based on increased global economic activity and rising rates.
JP Morgan Chase & Co is expected to report earnings on Friday 13, 2018 before market open, and the report will be for the fiscal Quarter ending March 2018. EPS forecast for the quarter is $2,28 and that is above last years EPS of $1,65.
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