Financial Stocks Struggle Amid Policy Risks and Market Divergence
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
- Financial Sector Performance: As of Wednesday, the financial sector is down over 3% in the S&P 500, making it the worst-performing sector, reflecting market concerns over President Trump's proposed credit card interest rate cap.
- Investment Banking Divergence: While large investment banks like Goldman Sachs and Morgan Stanley have seen year-to-date gains, JPMorgan Chase and Bank of America are down more than 5% due to policy risks, indicating varied market reactions across financial sub-sectors.
- Regional Bank Recovery: The regional banking index is up over 4.5% year-to-date, benefiting from cheaper valuations and improved earnings expectations, with analysts predicting this trend will continue to attract more investors.
- Policy Uncertainty Impact: Despite upcoming earnings reports for credit card companies, analysts believe that policy uncertainty remains a key factor suppressing stock prices, with clarity on regulations needed to remove this barrier.
Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JPM is 341.38 USD with a low forecast of 260.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 300.310
Low
260.00
Averages
341.38
High
400.00
Current: 300.310
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
